The current outlook for Landmark Corp. (TSE) is “uncertain at best,” says Ronald Coleman, president and CEO, pointing out that junior mining companies are experiencing tough times. “But we hope we’re at the bottom of the cycle.” The company is now debt free, with about $300,000 cash on hand, Coleman told shareholders at a rather subdued annual meeting. Its properties are all in good standing, but in a “hold” situation.
The company was forced late last year to close its New Brunswick antimony mine — in production since 1972 — because of continued dumping into world markets by Chinese producers that drove antimony prices to unprofitable levels. Most of the plant has now been sold but disposal of remaining equipment should net at least a further $500,000. Also, the company retains 586,000 Sceptre Resources warrants which it hopes to sell for about $600,000.
Some thought has been given to an amalgamation with two of its main holdings, Dominion Explorers (TSE) (68% interest) and Noble Mines & Oils (TSE) (67% interest), as an economy measure.
Cash flow from Noble is expected to double this year from last year’s $428,000, the meeting was told. That company will be somewhat more active in oil and gas exploration this year in Western Canada.
Dominion Explorers, Landmark’s mining arm, will be cutting back on exploration this year with a reduced budget of $200,000, but will maintain all of its properties.
In the Mishibishu area in northeastern Ontario, where Dominion has extensive holdings, drilling on its 179 claim Missing Lake group is just getting started.
The work is being carried out by Hemlo Gold Mines (TSE) which just made an $80,000 payment to Dominion and will spend $350,000 drilling there this year. An agreement calls for cash payments totalling $400,000 and work commitments of $1,760,000 over a 5-year period to earn a 51% interest.
Be the first to comment on "Future uncertain for Durham with antimony mine shut down"