At least three mining companies have shelled out $100,000 each to investigate the possibility of buying the assets of Cassiar Mining, a former subsidiary of Princeton Mining (TSE) which until recently operated an asbestos mine at Cassiar, B.C.
The mine was shut down earlier this year when Cassiar Mining went into receivership after the provincial government turned down the company’s request for an additional loan.
Cassiar Mining’s financial difficulties reflect higher-than-estimated capital costs to develop a new underground deposit as well as operating problems associated with the changeover from open pit to underground production. Production last year was also affected by a labor dispute.
So far the list of potential buyers includes Curragh Resources, Hillsborough Resources and Black Swan Gold Mines. Bids, however, will be accepted until April 24.
Town services are now being provided by the government, but this arrangement will be in place only until mid-July. In the meantime, Cassiar resident Linda McGill says members of the community are rallying to save the town. “Interested members of the community have formed a company with the immediate intention of showing employee commitment to a potential buyer, and if possible, actively participating in a new venture,” McGill explains. “We’ve realized that if anything is going to happen up here, we are going to have to help make it happen.”
McGill says the McDame Mining Group is still in the early stages, but so far about 40 residents have joined. The group is also attempting to diversify the town’s economic base by bringing in a tourism venture. Although little more than a tent camp when mine operations began in 1952, Cassiar now has many amenities including stores, churches, a school, a post office and a recreation centre.
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