MIME-Version: 1.0 Server: CERN/3.0pre6 Date: Thursday, 20-Nov-97 21:58:07 GMT Content-Type: text/html Content-Length: 1874 Last-Modified: Friday, 22-Dec-95 19:46:48 GMT
Goldcorp Inc today announced that its 50.3% owned subsidiary, Wharf Resources Ltd, has recorded an after tax writedown of its investment in the Golden Reward Mine of US$9.5 million. The writedown was made because of increased uncertainties arising from the proximity of Golden Reward Mine's unpermitted reserves to a ski hill and to a cemetery. Total reserves affected by the writedown are 314,000 ounces of gold, of which Wharf's 60% interest is 188,000 ounces.
The permitted reserves at the Golden Reward Mine will be depleted by the end of 1996. During 1996, exploration will continue on the property for additional reserves that may be amenable to open pit or underground mining. After the remaining reserves are depleted and until new reserves are located and permitted and/or existing reserves permitted, the Golden Reward Mine will be kept on a care and maintenance basis.
The writedown will reduce Goldcorp's earnings for the year ended December 31, 1995 by $7.9 million or $0.25 per share.
For further information, please contact:
Rolando C. Francisco
Senior Vice President and
Chief Financial Officer
(416) 865-0326
Email: goldcorp@interlog.com
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