Inco Gold - exploration and development

"Inco Gold Company was created in 1987 as an unincorporated business unit of Inco Limited. In 1988, Inco Gold Management Inc. was incorporated to supply management, exploration and engineering services to this unit. The first new project, at Casa Berardi, Quebec, was brought to production in September 1988, less than two years after completion of exploration. For 1989, Inco Gold's exploration and capital expenditures have been budgeted at approximately $94 million, a record level. Inco Gold holds interests in more than 80 precious metals ventures and prospects in Canada, the United States, Brazil, Indonesia, Papua New Guinea and France. The most advanced projects, in addition to Casa Berardi, are at Mineral Hill, Jardine, Montana, where initial production is anticipated in the third quarter of1989, and Crixas in central Brazil, where production is scheduled to begin during the fourth quarter of the same year.BackgroundTraditionally, Inco Limited's mineral exploration has concentrated on nickel and other base metals but since the early 1980s Inco's exploration activity has focussed strongly on precious metals, principally gold. As a result, three deposits have been discovered and developed . In order to accelerate the establishment of a strong gold mining enterprise with its own specific growth and profit objectives, Inco Gold Company was created in 1987 as an unincorporated business unit. At the end of 1988 Inco Gold's share of drill-indicated gold reserves was approximately 14 million short tons containing 3.4 million ounces of gold.At Casa Berardi in northwestern Quebec, one mine is in production and another is planned to open in 1990. Properties at Crixas in Brazil and at Jardine, Montana, U.S.A., were being readied for production in 1989. By 1991, Inco Gold's share of gold production is expected to be 125 000 ounces with a target of 400 000 ounces annually by the mid-1990s."