Mk Gold Writes Off Part Of Mine Project

MK Gold Co. said Thursday that it would write off a portion of its investment in the Jerooy gold project in Kyrghyzstan.

The company said it would record a charge for the third fiscal quarter ended Dec. 31 of about $6 million, or 31 cents per share, representing 43 percent of the company’s $14 million investment in the project.

MK Gold said engineering studies had determined that neither an underground mine and mill nor an open pit and heap leach mine would be economical.

As a result, the company said in a statement, the project will not be completed as previously designed, and the engineering, design work and certain related costs incurred in connection with the underground and heap leach designs will be written off.