New owners resume production

Mine racks up big bucks |

TERRACE — A major North
American mining company lost
more than $60 million (U.S.) on
the Golden Bear mine near Dease
Lake, the president of its Cana-
dian subsidiary said last week.

“Tt was an expensive mistake.

- But looking back it’s hard to say

we wouldn't fail into the same
problems again,”’ Jack Thompson

” of Homestake Canada said.

‘Homestake acquired the Golden
Bear mine when it purchased
control of North American Metals
in the early part of the decade.

Homestake this year sold its
North: American position to junior
Wheaton River Minerals Lid.
which is listed on the Toronto
Stock Exchange.

The -mine began as an un-
derground -operation in 1990
through majority owner Chevron
Minerals.

It experienced technical prob-
lems' and sufitred from a
marginal deposit up to and past
Homestake taking control.

“It. was hard to predict cost
overruns in the conversion of the
(processing) plant,”’ said Thomp-

_ Son.

“We also thought there would
be more ore there. We've spent
$1.million, a-year.and up to in-

“crease: reserves, he continued,

: Thompson added . that falling
gold prices. also hurt Golden
Bear's ability to pay costs and
return a profit.

- Homestake also changed the

“mine to an open pit ‘operation

when it purchased control.

* Thompson did say’ Homestake
: enjoyed a couple of good years at
‘Golden Bear.

“= ¥et continuing problems and a

-Jow grade ore body caused the
-i@ompany to cease open pit opera-
-= tions’ this. year after concluding
there was only 12-18 months of

yeserves remaining,

“When you look at the overall
‘Homestake operation, Golden
-Bear was a small portion,’’ said

'.Thompson..of the mine which
produced 58,000 ounces of gold
in 1992,

The’: Hamestake decision drew

> interest from Wheaton River
2 whieh’ 1 Was looking to expand.

Prince. Rupert are being

‘maintained.

The Department of Fisheries
‘and Oceans announced recently

<< the’ closures will continue until
further sampling is carried out.

~The closures: in marine areas

_. near several pulp and paper mills
_ are due to dioxin and furan con-

tamination.

Existing crab harvesting testric-
tions -are- being maintained at

The Terrace Standard, Wednesday, September 15, 1993 - Page AS

ee

GROUP PERFORMS
DHCENT ACT IN PARK.

. _Agroup of downtown neighbours were tired of watching a local park

- deteriorate. $0, they spent a Saturday cleaning up garbage, planting flowers

°°") and adding a fresh coat of paint to the rusting playground equipment,
~.‘This-event is part of @ movement that's helping change the world,

” 365 chances to win

‘PAUL NICHOL is Just one of many Elks out and around these days selling the 1994 edition of the
Dr.R.E.M. Lee Hospital Foundation’s cash calendars. They first went on sale at the Skeena Valley
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One simple act atatime. — - ,

Building Futures Through Friendship

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A deal was struck this summer
for $1.5 million and Wheaton
took over control of the mine.

Homestake did buffer its loss
by gaining a $13 million (U.S.)
tax credit, said Thompson.

He and Wheaton River presi-
dent Visco. Jutronich described
the purchase as a benefit to both
parties.

Included: was ‘the setting: aside -

of nearly $4 million to cover
eventual reclamation costs and
severance packages for employ-
ees.

"We didn’t want the province

. Kitimat Arm, as well as a clam
fishery closure,

‘The existing commercial ¢rab
harvesting closure at Prince
Rupert is exlended fo include

waters south of a line between.

Schreiber Point and Pethick
Point, east of the Port of Prince
Rupert boundary. in Venn Pas-
sage.

That. area remains open to
recreational and native harvesting
of crabs, but the consumption of
crab hepatopancreas should not

—

and peaple of B.C. lo be stuck

with a lability — another Cas-
siar,’’ said Thompson.

Wheaton River’s Jutronich said
milling of stockpiled ore has con-
tinved to provide cash flow while
plans to go back to underground
mining this fall near completion.

“We plan to cary on produc-
tion for another year to 18
months. The area has potential for
more ore reserves,’” he said.

Jutronich added that an un-
derground operation will better be
able to cope with the harsh north-
em winter.

iShellfish closures remain:

<< PRRACE-— Shellfish closures
at Kitimat and crab closures at

exceed 70 grams per week.

Porpoise Harbour and the area

around Coast Island are closed to
all shrimp harvesting.

DFO scientists are continuing to
carry out fish and sediment samp-
ling in all areas’ where Canadian
pulp and paper mills use chlorine
in their bleaching process.

The goverment now requires
mills substitute: chlorine dioxide
for half the chlorine they would
normally use. That reduces the
amount of organochlorine con-

- taminants released.

properties but this is its first oper-

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A bonus to Wheaton River is
the quality of the wark force al
Golden Bear, he said.

“We have inherited a first class
mining operation. We have expe-
rienced jabour, most of whom
have supervisory experience,”’
said Jutronich. e

- Formed two years ago with four |
principals, Wheaton River takes ’
its name from. a river in the @
Yukon.

It has assembled other ore

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