Noranda Minerals benefits from strong 1992 performance

Despite a faltering economy and declining metal prices, Noranda Minerals, a unit of Noranda (TSE), performed strongly in 1992.

Net earnings of $79 million (10 cents per share) were posted last year, compared to a loss of $133 million ($1.04 per share) in 1991. Reduced operating costs and productivity gains of 5-30% at many mines and processing facilities contributed to higher profits. The company also gained $33 million by selling a 10% interest in Hemlo Gold Mines (TSE) and received $10 million of Kerr Addison Mines’ (TSE) profit from its sale of Minnova (TSE).

A top priority with Noranda continues to be exploration, $87 million having been spent on grassroots work in Canada, the U.S., Mexico, Chile and Australia in 1992. Results include the discovery of ore-grade zinc mineralization on the Orchan and Bell Allard properties near Matagami, Que.; increased zinc reserves at the Half Mile Lake property in New Brunswick; and increased reserves at Hemlo Gold’s Brewery Creek property in the Yukon. A further $49 million was spent evaluating and developing properties. These include the Louvicourt base metal deposit near Val d’Or, Que., the New World gold project in Montana and the Collahuasi copper property in Chile. Noranda has a 45% indirect interest in Louvicourt which is being developed into a 4,000-tonne-per-day copper mine.

Hemlo Gold’s New World project is undergoing permitting and environmental studies and could start adding 80,000 oz. (2.5 million grams) per year to Hemlo’s output in 1996. Falconbridge, which is half-owned by Noranda, has a one-third interest in Collahuasi where production of 250,000 tonnes of copper is scheduled for 1998.

The company has budgeted $59 million for grassroots exploration in 1993. Special attention is being given to the copper potential of various polymetallic deposits in Western Canada, the U.S., Mexico and Chile.