Stewart
mine
word
soon

THE NEW owners of a north-
western gold property say they'll
soon decide if they'll keep the
property or put it up for sale.

American Barrick, which this
fall took over Lac Minerals and
its properties including Red
Mountain near Stewart, is now
evaluating the holding.

It's part of a greater examina-
tion of how Lac’s former assets
fit in with American Barrick’s
new corporte plan, company
spokesmar Vince Borg said last
week,

“'We said the prime reason for
bidding on Lac was for its South
American producing properties.
American Barrick does have land
positions in Peru but we haven’!
produced a single ounce of gold
so we're interesled in those
producing propertics of Lac’s,”’
he said,

Red Mountain was a focus of
Lac for the past four years with
that company starting along the
road to government approval for
an operating mine.

It’s original plan was io spend
this fall evaluating reserves in or-
der to make a decision to proceed
into production.

“T's not that we're unhappy
with Red Mountain or any other
Lac property in North America.
It's whether or not it fits into our
corporate strategy,” Borg said.

‘What may be fine for a small
company, a smaller type mine of
limited production, may not be
good for us,”” he added.

Borg anticipated that it will be
awhile before potential new
owners surface if American Bar-
tick does decide to divest itself of
Red Mountain.

He said that any money raised
by the sale of former Lac assets
will be used to pay off bills ac-
cumulated by American Barrick
in its takeover of Lac.

Lac went into this spring with
plans to spend close to $20 mil-
lion this year on Red Mountain.

More than half was to further
develop ore rescrves at the loca-
tion while the remainder is
targeted for pre-production work
should antieipated results prove
out.

Lac spent nearly $20 million in
previous years on the property
which carries indications of con-
taining two million ounces of
gold,

The company was also
anticipating a.quick approval tum
around period of six months,
leading to a start of construction
in 1995.

A key part of the Lac plan
revolved around milling the ore.
There were two options — build
its own mill or use Westmin’s
Premier mill, also near Stewart.

The Red Mountain location is
11km north of Stewart on Hwy37
and then 15km along a logging
road in the Bitter Creek Valley.

A tramway leading to the mine

location spanning more than”

1,000 metres from the base of the
mountain was an integral part of
the Lac plan.

Lights,
action,
BOOM!

WILL MOVIEGOERS one day
gct to watch Kitimat General
Hospital being dynamited?

Far-feiched as it may sound, it’s
a possibility, says Ron Burnett,
chairman of that community's
Health Care Centre building com-
miltce,

The provincial government an-
nounced last year it would come
up with $27 million to build the
cenlre when studics showed it
would be cheaper to build new
than renovate the aging hospital.

However, that still leaves the
problem of what to do with the
old building,

At one point, Bumelt said, 4
committee member had suggested
selling it to a studio so it could
blow it up as part of a future
Temminator-slyle movie.

But the joke has since taken on
a more serlous aspect.

Bumett explained that’s be-
cause it could cost as much as $3
million to dismantle the hospital
if the Environment ministry sets
tough conditions to deal with
problems like asbestos removal
and disposal,

Are you listening, Hollywood?

A12 - The Terrace Standard, Wednesday, November 2, 1994

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together for a more pleasant, productive and positive community supermarket.

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