LETTERS TO THE EDITOR (December 02, 1991)

When your writer was at Cord Ranch recently, he should have stopped by Alligator Ridge. He would have found that Kennecott Corp. and Nerco Inc. no longer own Alligator Ridge; rather, USMX Inc., a solid U.S. junior gold producer, is the owner.

USMX purchased the entire Alligator Ridge property, plant and equipment in May, 1990, from Kennecott and Nerco for cash.

Your article “Crown one of few juniors actively exploring at Carlin” (T.N.M., Oct. 28/91) states that Cord Ranch is one of the few sites on the Carlin Trend that is being explored by a junior gold company.

Although Alligator Ridge may be at the most southern extension of the Carlin Trend, USMX is expending more than US$1 million annually in exploration. As of this writing, we have 420,000 oz. of total gold resources, of which 206,000 oz. are proven minable.

We will produce at least 42,300 oz. from Alligator Ridge in 1991 and at least 53,000 oz. in 1992.

There are few junior gold-mining companies with the strength of USMX. We have an exceptionally strong cash, nil debt and positive sustainable cash-flow position.

John Haigh

Manager, Investor Relations

USMX Inc.

Lakewood, Colo.

My compliments to D.L. Johnston of Cominco Metals who, in his letter to the editor (T.N.M., Oct. 14/91), outlines the history of the Pine Point mine in the Northwest Territories from the time it commenced operating 25 years ago until its recent closing.

Any mining enterprise that can supply 650 citizens with 25 years of year-round employment at premium wage rates, and return $600 million to its shareholders in dividends (and untold millions to our three levels of government) should be roundly commended.

Having spent many years in the mining industry, I see nothing wrong with permanent mining communities, especially if they have an assured life of 25 years.

Commuter mines certainly have a place in the industry, especially if they are of short duration, but permanent mining communities supply a more stable family environment, and act as a catalyst in opening up our vast northern regions. So let us put a little more thought into our planning as to whether or not commuter mines are the cure-all for an industry that brought Canada into the 20th century.

Earl MacDougall

North Bay, Ont.