More exploration, development on agenda for Belmoral Mines

In a strong financial position today compared with recent years, Belmoral Mines will be placing more emphasis on exploration and development, says the company’s new president. “We have to dedicate ourselves to a lot of development and become better developers,” Steven Harapiak, 54, told The Northern Miner in an interview. The company has property holdings in the Val d’Or area of northwestern Quebec and the Timmins and Missanabie areas of northeastern Ontario.

Debt free and with more than $30 million in cash reserves, Belmoral will produce about 50,000 oz gold this year, well down from a projected 72,000 oz. Harapiak said estimated gold output in 1988 will be less than 50,000 oz. Two mines in the Val d’Or area, the Ferderber and Dumont, account for the bulk of the company’s gold production.

A president who likes to take a “hands-on approach,” Harapiak said the company’s Val d’Or property “hasn’t had the work done on it it should.” While more dollars are being spent on development of the Timmins projects, the Val d’Or area “has tremendous potential,” he said.

In northwestern Quebec, the two producing mines and a mill currently processing 1,500 tons daily are situated on 21,000 acres of land under Belmoral’s control. A major exploration program involving more than 100,000 ft of drilling was performed this year on the property. Wrightbar prospect

Located near the producing mines (on adjoining property) is the Wrightbar prospect, in which Belmoral currently has a 22% interest and which Harapiak said could possibly be in production by the end of the third quarter, 1988. Ore from the Wrightbar property is expected to be processed at the Belmoral mill.

In the Timmins area, Belmoral has interests in two properties, Vedron (56%) and Broulan (50%). The Vedron project is gearing for production in 1988, whereas the Broulan project may be close to two years away from production.

The other Ontario project is located in the Missanabie area, where Canreos Minerals (1980) (Belmoral is working up to a 40% interest in the company) is hoping to prove up enough reserves for a mill decision.

Earlier this year, prior to Harapiak’s appointment to the president’s chair, Belmoral made an unsuccessful bid for control of Louvem Mines, a small Quebec gold-producer. Soon after the offer fell through, stock markets around the world suffered a huge decline (the October collapse), sending share prices tumbling and, in Belmoral’s case, increasing the company’s buying power considerably. While he admitted the company is looking at other possible mining purchases, Harapiak refused to be specific. Low-cost producer

He did say, however, that Belmoral must be a low-cost producer, and as far as any future purchases are concerned, the company “must be on the lookout for opportunities that give us low-cost production.”

Born at Cowan, Man., a farming community located about 300 miles northwest of Winnipeg, Harapiak started his mining career with Inco Ltd. in Sudbury as a summer student. He graduated from the University of Manitoba with a degree in mechanical engineering.

Among the various companies he has worked for are Hudson Bay Mining and Smelting, in Flin Flon, Man., where he served as general manager of the Flin Flon and Snow Lake projects; Denison Mines, in Elliot Lake, vice-president uranium operations; Noranda Mining, Toronto, senior vice-president operations; and Potash Corp. of Saskatchewan, Saskatoon, Sask., president (1981-87).

He is also a former president of the Canadian Institute of Mining and Metallurgy and has served on Belmoral’s board of directors since 1985.

Harapiak was named president following the resignation of J. Malcolm Slack. At the same time, Kenneth Dalton became chairman of the company. Belmoral reported a net profit of $436,000 for the first nine months of 1987.