Nickel plate costs dog Corona Corp.

Low ore grades at the mine have necessitated higher waste rock removal and consequently mining costs have been higher than planned, the company reports. The production cost at the mine for 1988 was about $370(US) per oz.

During the first quarter of this year, the mill at Nickel Plate averaged 2,851 tons per day, with recovery rates of 85%. (The original design capacity of the mill was 2,700 tons per day.)

Cyanide and hydrogen peroxide consumption at the mill have been high, Corona reports. Cyanide is used to leach the gold from the ore and the hydrogen peroxide is deployed to neutralize the small amounts of cyanide flowing into the tailings dam along with waste rock.

The company notes the west- coast province is one of the few areas of the world which requires zero discharge of cyanide. The addition of hydrogen peroxide speeds the dissolution of cyanide, which would dissipate naturally over time.

Corona continues to explore surrounding territory and underground at the mine. Drilling on the neighboring Canty property indicates current reserves there of about 450,000 tons of mineable material, the company says.

Corona reports total production of about 96,000 oz gold during the first quarter, excluding output from the Williams mine at Hemlo in northern Ontario. (The Williams mine ownership dispute has yet to be settled by the courts.) Production during the first quarter of 1988 totalled about 77,000 oz.

The company recorded net earnings (after extraordinary items) of $2.3 million on revenue of $46.3 million during the first quarter, compared with $7.5 million on revenue of $44.3 million for the same period last year.

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