Wharf has record gold production

Toronto-listed Wharf Resources enjoyed a record level of gold production in 1993.

Combined production from the Wharf and Golden Reward mines, both in South Dakota, rose 22% to 123,710 oz. last year from 101,720 oz. in the previous year.

Other year-end results also showed marked improvement. Earnings were $5.2 million or 26 cents a share on revenues of $44.1 million, compared with $4.6 million or 23 cents a share on $36.6 million in 1992.

The company sold 121,369 oz. gold at $US362 per oz. in 1993, compared with 104,141 oz. at $US351 in 1992. Total cash costs, however, increased to $US291 from $US268.

Gold production at the wholly owned Wharf mine reached an all-time high of 102,381 oz., compared with 95,186 oz. in 1992. This led to a 50% increase in the mine’s operating profit.

Productivity improvements and a lower stripping ratio helped keep production costs in the range of US$180 per oz. The company is forecasting gold production to be 100,000 oz. at $US181 per oz. in 1994.

In an effort to improve the mining plan at Golden Reward, Wharf, which owns 60% of the mine, performed 100,000 ft. of reverse circulation drilling last year. Yet despite the fact that grade control and recovery were improved as a result, the company incurred a US$1.9-million operating loss due to difficulties encountered during the first nine months of the year. Wharf’s share of gold production in 1993 was only 21,329 oz. and cash production costs were $US333 per oz. The company is forecasting its share of production this year to be 35,820 oz. at a cash production cost of $US323 per oz.

Wharf is owned 50.3% by Goldcorp (TSE) and 35.7% by Dickenson Mines (TSE).