City Resources President resigns

Ron Longstaffe has resigned as president and chief executive officer of City Resources (Canada) effective March 31.

The company says “Mr Longstaffe has objectively assessed the priorities of the company * * * and has come to the conclusion that the president should be a person who has a strong mining background.”

John Bailey, a director of the Australian parent company, City Resources Limited, will reassume the presidency on an interim basis. Bailey said that “when Longstaffe was appointed last September the directors had taken the view that a background in mining was not the major requirement for the position * * * but the directors now accept Longstaffes’s judgment is correct and have accepted his resignation.”

Longstaffe, who came from a senior position with Canfor, will remain a director and part-time consultant to Bailey.

City plans to bring the once problem-plagued Cinola gold project in the Queen Charlotte Islands on stream by October, 1989 (N.M., Dec 14/87).

Bailey estimates the mine will cost $100 million, about $10 million less than last year’s estimates. He admits the company is trying to shave costs and is taking time to go over final feasibility work before proceeding.

Because of difficult metallurgical characteristics of the Cinola ore, City had opted for a new Arseno process to treat the ore. It will be the first time the process will be used on a large commercial scale. Graham Balderson, City’s executive vice- president technical, who was in charge of metallurgy, has returned to Australia and a new metallurgist will be appointed shortly, Bailey said.

Stage Two permitting applications will go to the provincial government this month.