MSV records second straight annual loss

While it remained in the red, MSV Resources (MSV-T) saw its balance sheet improve somewhat in 1996.

The Montreal-based junior recorded a loss of $3.9 million (or 12 cents per share) on revenue of $45 million, compared with a loss of $30.8 million ($1.03 per share) on $52.8 million in the previous year.

During the fourth quarter of 1996, the firm lost $2.9 million (9 cents per share), compared with $33.2 million ($1.14 per share) during the same period in 1995.

Copper production from MSV’s Copper Rand and Portage mines in Chibougamau, Que., increased slightly to a record 15 million lb., though gold output from those mines dropped 5,000 oz. to 45,000 oz. This year’s copper output is projected to be 10 million lb., with gold production pegged at 38,000 oz.

gold. Both mines are scheduled to close in the next fourth quarter.

The company plans to develop the deeper reaches of the Copper Rand mine, where resources are estimated at 4 million tons grading 1.5% copper and 0.09 oz. gold per ton (3.09 grams gold per tonne). A feasibility study will be completed by June, after which time MSV will proceed with a $20-million financing. Currently MSV favors a plan to deepen the No. 4 shaft and develop drifts and stopes over a 2-year period.