LETTERS TO THE EDITOR (November 25, 1991)

I was stunned regarding the recent announcement by Eurus Resource that no additional work is to be carried out on the Rock & Roll property of Eurus and Thios Resources (T.N.M., Oct. 28/91). As a longtime stockholder in Eurus, I am angry that no explanation was given as to why.

Consider that two weeks earlier your publication carried a story that a drill rig was to be mobilized to explore the same property.

Also, more than 90% of the strike length on the property remains undrilled. Murray Pezim (Eurus chairman) has worked none of his magic as far as Eurus stockholders are concerned. First of all, the status of the Eskay Creek claims owned by Eurus remains unclear even as the Eskay Creek area is now open to staking again.

Repeated inquiries by this stockholder to clarify the status of these claims has not been answered by Eurus management.

Next, Eurus stockholders were treated to the Spectrum gold property where Eurus has the right to earn a 50% interest by spending $8 million. No thought was given as to how Eurus was or is going to raise $8 million. Instead, Eurus spent more than $1 million of stockholders’ money to basically earn no interest.

Pezim has spent millions of dollars exploring Spectrum and Rock & Roll and is now throwing in the towel on both. Eurus might set a record for the largest percentage decline this year on the Vancouver Stock Exchange. I would be hard pressed to name one Prime Equities affiliate that has gone up since the beginning of the year.

Murray promises that 1992 will be a great year. I’d be satisfied with a break-even 1991 and a proxy sent to my home so I can vote in a new management team.

James Gerber

Lansing, Mich.

The $95-million NODA (Northern Ontario Development Agreement) funding package, announced recently by the federal and provincial governments (T.N.M., Nov. 11/91), was widely heralded as great news for the northern Ontario forestry, mining and tourism industries.

What the government ministers failed to disclose is that this package is a 4-year program replacing a similarly mandated $250-million program initiated in 1984.

Why should northern Ontario residents rejoice at the announcement that a program essential to the long-term health of the north was cut by at least 60%?

The other major injustice is the myth that this program “will inject $95 million into the economy of northern Ontario.”

Minister of State Tom Hockin was quoted as saying “it will be a tremendous benefit to the residents of northern Ontario.” The majority of these taxpayer dollars will be spent and administered by government and its related agencies, and will be spent in government facilities and Ontario universities.

It is, therefore, obvious that the bulk of the benefit will not be to the residents of northern Ontario.

The forestry, mining and tourism industries have already suffered near fatal blows from government policies in the taxation, environmental, native land claim and investment regulation areas.

Recent demands for extended time periods for environmental studies and royalties payable to native groups are squeezing the final signs of life out of the industries that create wealth in the north.

Research and development funds are essential for long-term sustained development of the vast resources of northern Ontario. They are, however, only a small part of the solution to the malaise that has infected the entire north.

The battles currently being waged throughout northern Ontario for basic ideals, such as guaranteed access to resources, will have a profound impact on the future standard of living of every northern resident. If the politicians in the south do not hear a loud, disgruntled voice from the north, they will assume that we are prepared to accept a lifestyle driven by welfare payments and government “make-work programs” while trees rot and mineral deposits remain undeveloped.

Don McKinnon

Timmins, Ont.

I am writing to alert mineral explorers in Quebec to be aware of the escalating costs of doing exploration there, and what a person can do to try to correct this.

Write to Lise Bacon, Minister of Energy and Resources, Government of Quebec, Suite A-308, 5700 4th Ave. W., Charlesbourg, Que. G1H 6R1. I believe that complaints against the rising costs are in order. G.J. Callahan

Bethany, Ont.