Golden Rose Mine Creates Loss for Noramco Mining

Beleaguered shareholders of Noramco Mining Corp. (TSE) won’t find much comfort in the company’s latest financial results which show a loss of $7.92 million (49 per share) for the first six months of the current fiscal year.

The company said the loss was primarily due to the results at the Golden Rose mine in Ontario. After operating at a rate lower than originally forecast (due to a combination of the shortage of mineable working faces and start-up problems in the mill), Noramco Mining’s new management closed the mine pending the results of an ongoing exploration program.

According to Chairman and CEO, Brian Pewsey (also president of Breakwater Resources), the program is designed to better define a previously indicated higher grade ore zone below the fourth level. Results are expected by year-end. Earlier this year, Breakwater Resources (TSE) acquired a 19.9% interest in Noramco Mining and appointed several new directors to repla ce former officers R. A. Bruce McDonald and Gordon Keevil, both of whom resigned shortly after the takeover. Breakwater is still evaluating a number of other projects held by the company.