Northgate earnings up compared with ’88

The company’s third-quarter net income increased to $675,000 or 3 cents per share from $216,000 or 1 cents per share at the same time last year.

The Northgate group of companies produced 110,000 oz gold in the first nine months of 1989, compared with 100,000 oz during the equivalent period in 1988.

“Most of the increase is attributable to the Jamestown mine in California which produced 61,900 oz gold at an average cost of $256(US) per oz in the first nine months of 1989, compared with 51,100 oz for $285 per oz in the same period of 1988,” Northgate said. The Jamestown mine is 70% owned by Northgate’s 42% owned affiliate Sonora Gold (TSE).

Northgate says it is anticipating a dramatic increase in future gold production when ABM Gold’s (TSE) 200,000-oz-per-year Colomac gold mine in the Northwest Territories comes on stream next year.

Expansion of Campbell Resources’ (TSE) Joe Mann gold- copper mine in Chibougamau, Que., is also expected to increase gold production attributable to companies in the Northgate group. Northgate holds 26% of Campbell and 50% of ABM.

Northgate recently purchased the assets of Westfield Minerals (TSE) which include a 35% stake in the Choquelimpie gold mine in Chile, a package of U.S. and Canadian exploration properties and a 33% stake in Ennex International of Ireland.

]]>