1992 — A LOOK BACK — Project owners in B.C. experience

Several advanced mineral projects moved forward in British Columbia in 1992, while others were put on hold to await better financing conditions, or were placed in regulatory limbo by government decree.

The year began with a decision by Placer Dome (TSE) not to spend $240 million to earn a 50% direct interest in the Eskay Creek deposit north of Stewart, B.C. Instead, the major worked out a new deal with International Corona to convert its indirect interest into an approximate 22% direct interest.

Eskay Creek is now in the feasibility study stage under the guidance of Homestake Mining (NYSE), which acquired Corona through a share-swap arrangement earlier this year. A road has been built from Hwy. 37 to Volcano Creek; a small portion (to Eskay Creek) remains to be completed. Placer Dome’s sober second thoughts weren’t confined to Eskay Creek. In February of this year, the company said it would not proceed with mine development at its Mt. Milligan copper-gold deposit north of Prince George because the return wasn’t sufficient to justify the $500-600 million capital costs. A gold price exceeding US$400 per oz. and a 10% reduction in capital costs would be required for the project to be viable, the major reported at the time.

Placer invested $266 million to acquire Mt. Milligan in 1990, only to write down the entire investment earlier this year. The major also wrote down $50 million of its $106 million carrying value interest in Eskay Creek. A mine development certificate was awarded to Imperial Metals (TSE) for its Mt. Polley copper-gold deposit near Williams Lake. But the company still faces the task of raising financing for the project (no easy feat in these times of low metal prices). Also receiving positive news was Curragh (TSE), whose Stronsay lead-zinc project in the province’s north was approved by the provincial government.

The fate of the huge Windy Craggy copper deposit owned by Geddes Resources (TSE) awaits a decision — expected sometime in 1993 — by the provincial government.

The government pulled Windy Craggy from the mine development review process and asked CORE (Commission on Resources and the Environment) to look into the land use issues behind this controversial northern project. The report is expected to be released shortly.

Vocal preservationist groups lobbied the government to include Windy Craggy in a wilderness area where resource development would not be allowed. Mining industry groups argue for a multi-use land strategy, and insist the deposit is far too valuable to be locked away in

a preserve few British Columbians will ever have the opportunity to visit. The dynamic team of Robert Dickinson and Robert Hunter remained the dominant exploration and development group in the province in 1992, spending millions of dollars to advance both the Fish Lake and Kemess copper-gold deposits. Taseko Mines (VSE), active at Fish Lake, and El Condor Resources (VSE), working at Kemess, both reported significant progress in moving forward their respective deposits. However, low gold prices and recent weakness in copper prices have made finding a buyer challenging.