The year in review Jockeying for position, reshuffling assets in

With so many in the industry jockeying for position over the past 12 months, 1986 may well go down in mining history as the year of the asset shuffle. More than one observer no doubt has been left scratching his head trying to sort out what company now owns what or is about to own or about not to own what.

Falconbridge Ltd. got the ball rolling late in 1985 when it went out shopping and came home with Kidd Creek Mines. It spent this past year selling off some assets to pay for its purchase. And over the past year, more and more news in The Northern Miner was devoted to acquisitions, take overs, asset sales as well as court trials and appeals regarding ownership of assets.

While each asset shuffle told its own story, the over-riding rationale behind the sellers was quite simple: earn some money to feed an ailing balance sheet. In the mining industry when the going gets tough, the tough get going and stick up a for sale sign.

For the buyers in the equation, picking up an asset may mean a short cut method to increased production, diversification and increased revenues.

Adding excitement to the year was the rising price of gold which hit a high of $442(US) per oz early this fall. After remaining above the $400 level for more than two months, the price of gold now hovers around the $390 per oz level, a substantial improvement over the $315-$320 level at this same time last year.

And as the price of platinum shot up to $665(US) per oz, many investors and explorers, alike, caught platinum fever. Madeleine Mines made news this year with plans to bring its optioned Lac des Iles platinum deposit near Thunder Bay, Ont., into production. However, Lac Minerals and its partners, Stillwater Mining Co., Chevron and Manville Corp. are first off the mark and expect to have their Stillwater Montana platinum-palladium deposit into production by mid-1987.

Other stories that made the front page of The Northern Miner follow in this roundup and review of the past year.

Jan 6 — The Quebec government alters its flow-through rules to extend the deadline for funds to be expended until the end of February.

Esso Minerals Canada buys a 35% stake in the Selbaie copper-zinc mine from BP-Canada Ltd.

Jan 13 — Inco Ltd. and Golden Knight make another discovery on their Golden Pond property in the Casa Berardi area.

Jan 20 — Denison Mines writes off its entire $240-million investment in Quintette Coal at the insistence of its auditors.

Lornex Mining and Cominco pool their copper assets in Highland Valley, B.C.

Jan 27 — Canamax Resources announces it will place a new gold mine into production every year over the next four years. First on the list is its Bell Creek property near Timmins, Ont.

Campbell Red Lake Mines buys Kiena Gold Mines from Falconbridge Ltd. for $86.6 million.

Feb 3 — Project operator Inco Ltd. says its decline ramp at the Golden Pond east property should be in ore in April or May.

Drilling at Teck Exploration’s Lamaque division discovers no less than 10 new gold-bearing veins, each of which is potentially ore.

Feb 10 — Aur Resources starts to put together a sizeable deposit on its First Canadian property in the heart of the Val d’Or camp.

Campbell Red Lake Mines buys just over 4% interest in Lac Minerals. Campbell trades around $28.75, while Lac closes at $33.50 that day.

Northgate Exploration and Noranda Inc. accept an offer to sell their interests in Tara Exploration Development.

Feb 17 — Agnico-Eagle Mines increases its equity interest in Dumagami Mines to 30.5%.

Mascot Gold Mines says it will be producing gold from its Hedley, B.C., project in early 1987.

Feb 24 — Inco Ltd. and Golden Knight intersect the best gold mineralized section to date on their Casa Berardi gold property. Hole 72958 intersected 141.4 ft of core grading 0.56 oz gold per ton.

Lawyers for Lac Minerals and International Corona deliver their final argument in the Page-Williams Hemlo case. Shares of each company closed the day at $36.88 and $14.75, respectively.

March 3 — Consolidated Professor is confirming tonnage at its S hoal Lake property.

Stelco Inc.’s Griffith mine near Red Lake, Ont., shuts down operations.

March 10 — A deep drill hole at Granges Exploration’s Morgan Lake property in Manitoba encounters high grade mineralization rich in zinc and gold.

Rumors of a new gold find by St. Joe Canada Inc., about 40 miles west of Pickle Lake, Ont., has sparked some heavy staking in that area.

March 17 — In a bombshell court ruling, Mr Justice Richard Holland rules that Lac Minerals must hand over the Page-Williams property to International Corona.

Production is under way at Agip Canada/ Total Erickson Resources’ Mt. Skukum project in the Yukon.

March 24 — St. Joe Canada has defined a zone containing about 575,000 tonnes of 0.58 oz gold per ton at its Golden Patricia property near Pickle Lake, Ont.

Deep drilling on the Beardmore, Ont., area gold property held by Metalore Resources returns several wide strongly mineralized intersections.

March 31 — Development work at depth by Echo Bay Mines has confirmed the extension of the centre zone of the Lupin orebody to a depth of 2,130 ft.

April 7 — Madeleine Mines has a target of a 3,000-ton-per-day open pit operation on its Lac des Iles platinum deposit, near Thunder Bay.

International Corona buys an additional 5% interest in the Teck- Corona Hemlo mine, hence becoming an equal partner with Teck Corp.

April 14 — Cominco Ltd. puts the Con mine at Yellowknife on the selling block for an undisclosed price.

Exploration activity heats up in the Pickle Lake area on the heels of the recent St. Joe Canada discovery.

April 21 — Vestgron Mines announces the Black Angel zinc/ lead mine near Maarmorilik, Greenland, is shutting down operations June 1.

Noranda Exploration pulls 105 ft of 32% zinc at the Isle Dieu Mattagami Mines property in northwestern Quebec.

April 28 — Placer Development hits big with a drill hole on Claude Resources Seabee property in the La Ronge area of Saskatchewan.

Dickenson Mines makes a pitch to Sullivan Mines to buy back the 35% interest in the White gold mine it sold to Sullivan for $10.25 million back in 1982.

May 5 — Quebec-crown corporation Soquem sets up a new company Cambior Inc. to hold most of its gold assets and to sell shares to the public.

Campbell Red Lake Mines plans to sell 4.6 million of its shares, thereby diluting its parent company Dome Mines back to 50.4%.

May 12 — Lac Minerals opens the deepest single lift shaft (7,225 ft deep) in North America at its Macassa mine in Kirkland Lake.

St Andrew Goldfields hits high grade holes at its Stock Twp. property.

May 19 — Placer Development doubled gold production in 1985 with its Kidston mine in Australia.

If gold production from Northgate Explorations’ two Chibougamau mines continues at the pace set so far this year, 1986 production will top the target of 70,000 oz.

May 26 — A discovery at the Trout Lake mine in northern Manitoba by operator Hudson Bay Mining & Smelting could mean higher cash flow for Granges Exploration which holds a 19.8% interest in the operation.

International Corona requests that the hearing on who owns the Hemlo fraction be delayed.

June 2 — For the first time since the company started paying dividends in 1959, Denison Mines will not declare a dividend in the sec ond quarter on its participating shares.

SherrGold Inc.’s MacLellan mine is on target and slated to pour its first bar of gold this fall.

June 9 — Placer Development announces plans to reopen its E ndako molybdenum mine at Fraser Lake, B.C., at one-third capacity.

A Vancouver group is taking the assets of Getty Resources public.

Blackdome Exploration pours its first gold at Clinton, B.C.

June 16 — Inco Ltd.’s new Thompson open pit in Manitoba will be the company’s lowest cash- operating-cost mine.

Echo Bay Mines expects to spend $4 million this year for further testing and a feasibility study on a major expansion of its 50% held Round Mountain mi
ne in Nevada.

June 23 — Initial reserve calculations on the Estrades property by operator Teck Explorations indicate there are almost 2.6 million tons of geological reserves outlined averaging 0.385 oz gold equivalent per ton in three zones.

Falconbridge Ltd. sells its interest in Giant Yellowknife Mines and Akaitcho Yellowknife Gold Mines to Pamour Inc.

June 30 — Two drills are on site at Lac Minerals’ Bousquet gold mine in northwestern Quebec to follow up a potential new heavy mineralized gold zone.

Placer Development is selling its 21.4% interest in Placer Pacific.

July 7 — Agnico-Eagle has plans to step up exploration and development at its main gold operation near Joutel, Que., and has tentative plans for another 5,000-ft shaft for the Telbel.

Gordex Minerals opens Canada’s first heap leach gold mine located in Cape Spencer, N.B.

July 14 — Aur Resources plans to spend $18 million on four properties in the Val d’Or area of Quebec.

Cominco Ltd. and Lornex Mining finalize the agreement to combine their Highland Valley, B.C., mining operations into one of the largest copper producers in the Free World.

July 21 — Indications are that Corporation Falconbridge Copper is going ahead with its rich zinc-copper-silver-gold deposit on Winston Lake near Schreiber, Ont.

Mascot Gold Mines gets project financing and approval from environmental regulatory authorities for its Nickel Plate open pit mine near Hedley, B.C.

July 28 — Teck Corp. and Tundra Gold Mines draw up an exploration agreement for a portion of the now dormant Lamaque gold property at Val d’Or, Que.

Muscocho Explorations officially puts a second mine into production at its Montauban property, southwest of Quebec City.

Aug 4 — A production decision is expected this week on BP-Selco’s Hope Brook gold project in Newfoundland. When it enters full production in 1989 it will be the sixth largest gold producer in the country.

A total of eight drills are slated for Lac Minerals’ Bousquet property to delineate more fully the extent of the mineralization.

Aug 11 — Kerr Addison buys Falconbridge Ltd.’s stake in Corporation Falconbridge Copper for $120 million.

Significant gold values are encountered by Muscocho Explorations in the decline ramp at the Magino gold property, east of Hemlo. Joint venture partner is McNellan Resources.

Aug 18 — The go-ahead is given to bring the Stillwater platin um/ palladium project into production by Lac Minerals in conjunction with partners Stillwater Mining Co., Chevron Corp. and Manville Corp. Three diamon d drills are at work at the Madeleine Mines optioned Lac des Iles platinum-palladium project near Thunder Bay.

Aug 25 — After nearly six years of surface and underground exploration D’Or Val Mines is on the brink of a production decision at its Beacon gold property near Val d’Or, Que.

Pamour Inc. and joint venture partner Erg Resources expect to make a decision soon on recovering about 80,000 oz of gold per year from big tailings dams in the Timmins area of Ontario.

Sept 1 — A $50-million underground exploration and test program has been proposed by the Cigar Lake Mining Corp., the 100% owner of the Cigar Lake uranium deposit in Saskatchewan.

With an additional 246,000 tons of reserves outlined at the Kremzar gold property operated by Canamax Resources near Wawa, Ont., reserves stand at 1.1 million tons of 0.235 oz gold per ton.

Sept 8 — The new team at Corporation Falconbridge Copper target production at the Winston Lake zinc project for mid-1988.

Sept 15 — Agnico-Eagle Mines orders a 2,000-ton mill for its controlled Dumagami Mines in Bousquet and Cadillac twps., Que., with initial output targetted for mid- 1988.

Consolidated gold production for Echo Bay Mines will reach a record 480,000 oz per year by 1987 following the acquisition by the company of three producing mines owned by Tenneco Inc.

Sept 22 — Claude Resources hopes to find out before year-end whether Placer Development intends to move to underground exploration at the Seabee property near La Ronge, Sask.

During the next two to three years Lacana Mining Corp. hopes to more than double gold production from the current 60,000 oz per year to more than 120,000 oz.

Sept 29 — A heavy development program is under way at Dickenson Mines’ White mine with this year’s target shooting for 14,000 ft of drifting and raising and 72,000 ft of underground diamond drilling.

A $3.6-million decision has been made by Echo Bay Mines, to launch a major exploration program on the Cameron Lake gold property of Nuinsco Resources in the Kenora mining district of Ontario.

Oct 13 — a Teck Corp.-led consortium buys control of Cominco Ltd. from parent Canadian Pacific. Noranda Minerals will put the Isle Dieu

Mattagami Mines’ rich zinc-silver-copper per deposit in northwestern Quebec into production.

Oct 13 — Highland Crow Resources expects to make a decision to dewater the No 1 shaft at the former producing Pickle Crow mine near Pickle Lake, Ont.

Pegasus Gold starts up the Florida Canyon mine, the first of three new mines planned within the next several months.

Oct 20 — Granges Exploration, project operator, is optimistic on a final production decision on the Crofoot gold project near Lovelock, Nev.

Grassroots work by Micham Exploration Inc. in Switzerland is proving a significant gold potential in that country.

Oct 27 — Pamour Inc. is buying a 50.1% interest in Consolidated CSA Minerals giving it control over a 50% interest in the Bell Creek gold project being developed by Canamax Resources at Timmins, Ont.

A gold discovery in Newfoundland with large tonnage possibilities has been made by Westfield Minerals and partners The Coniagas Mines and Anglo Dominion Gold Exploration.

Nov 3 — Canamax Resources and joint venture partner Pacific Trans Ocean Resources expect to be making a production decision in early 1987 on the Ketza River project in the Yukon.

Armed with more than $26 million, Eastmaque Gold Mines expects to be producing gold by the first quarter of 1987 with first production coming from its Cargo Muchacho mine in California.

Nov 10 — Lac Minerals is appealing the decision of Ontario Supreme Court Justice R. E. Holland awarding the Page-Williams mine to International Corona.

Nov 17 — Noranda Inc. has reached an agreement in principle with its two partners Golden Sceptre Resources and Goliath Gold Mines to form a new public company which would own the Golden Giant mine in the famed Hemlo gold camp.

Nov 24 — A decision has been made to build a 350-ton-per day mill at the Bell Creek gold property near Timmins. Operated by Canamax Resources and Consolidated CSA Minerals, the new mine is expected to be in production by year-end.

The fate of Rio Algom’s East Kemptville tin project is now resting in the hands of its bankers with a decision on its future expected in one month’s time.

Dec 1 — Pamour Inc. completes the first successful heap leach test ever in northern Ontario and is gearing up for commercial production next year.

Teck Corp. says its will not proceed on Fleck Resources’ Marathon Platinum bet near Marathon, Ont.

Dec 8 — The Red Dog will run in 1991 says Cominco. Located in Alaska, the Red Dog is the world’s richest zinc deposit.

Operator with a 50% interest, Campbell Red Lake Mines is proceeding on the underground mine at Detour Lake on the expectation that the project will be given the green light.

Dec 15 — Syngold Exploration and operator Kidd Creek Mines intersect a wide zone of high gold values on their Owl Creek West property in the heart of the famed Timmins’ mining camp.

A complex corporate restructuring of American Barrick gives President Peter Munk a 63% voting interest in United Siscoe Mines which in turn would own 30% of American Barrick. The latter company also acquires a 4.9% stake in Consolidated Gold Fields.

Dec 22 — After two years of delays, Sonora Gold Corp.’s Jamestown project in California is set to pour its first gold.

The Quebec government has announced that it will be reducing the deduction for
investments in mineral exploration through flow- through shares to 133.3% from 166.6%.

Dec 29 — Patrick C. MacCulloch of Selco the minerals division of BP Canada is named The Northern Miner mining man of the year.

ERG Resources in which Pamour Inc. will hold a 66% interest plans to retreat 140 million tonnes of tailings in the Porcupine area.