Nerco attributed the higher reserves to minesite and exploratory drilling and development at its North American operations including the Con mine at Yellowknife which is targeting 100,000 oz of gold production per annum in the near future. “Our mineral’s subsidiary was successful at adding significant new reserves in 1988 at a pace that exceeds our annual production — by more than four times our gold production rate and more than double our silver production rate,” noted Gerard Drummond, Nerco’s chairman. Last year, Nerco produced 145,000 oz gold and five million ounces silver from it’s mines in the United States and Canada.
According to Lawrence Heiner, the president of Nerco Minerals, the company has been conducting extensive exploration at a new development site near its DeLamar mine in western Idaho. The Florida Mountain project was initiated in 1985 after the company acquired the 47.5% interest in the mining operation and nearby properties which is didn’t already own.
In the past two years, nearly 180,000 ft of rotary drilling and 12,000 ft of core drilling has been completed on the Florida Mountain site. Through 1988, approximately 435,000 oz of contained gold reserves and 8.9 million oz of contained silver reserves were delineated there. Feasibility work is under way and Nerco expects to make a production decision by mid-1989, he said.
“We also plan to conduct additional development drilling at this site this year,” he said.
During 1988, the company’s precious metals division had an operating income of $8.3 million(US) compared to $13.6 million a year earlier. Nerco is a major U.S. coal producer with significant oil and gas interests in the Gulf Coast. Nerco Inc. is 90% owned by PacifiCor (NYSE).
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