Declining platinum prices have little immediate effect at

** Madeleine sites **

Massive dumping of platinum contributed to the recent decline in spot prices for the precious metal, analysts say, following the collapse of world stock markets in mid-October.

The metal, which had been hovering in the $575-$600(US) per oz range since the latter part of August, dipped to as low as $460 before rebounding to the $480-$500 range.

Two platinum mining projects in North America which could be affected by any fall in prices are the producing Stillwater mine in Montana and the Madeleine Mines prospect in northwestern Ontario. Officials from both projects did not appear overly concerned when contacted by The Northern Miner.

“Basically, we’re dealing in long-term prices; we’re not really responding to immediate markets,” Les Darling, public affairs co- ordinator for Chevron Resources, said. Chevron is operator of the Stillwater mining venture; its partners are Manville Corp. and Lac Minerals.

J. P. Sheridan, president of Madeleine, pointed out the producer price for platinum has remained steady at $600 for more than a year. “I don’t think any mine production is sold at the spot price,” he said. Madeleine is hoping to have its mine, situated in the Lac des Iles area north of Thunder Bay, in production by summer, 1988.

At Stillwater, where the mine started up operations in March of this year, the mill is currently processing 650 tons ore per day. Darling said that daily rate should climb to 700 tons by mid-1988. Concentrates from the mill are currently shipped overseas for further processing; a $10-million smelter for the Montana mine site is on the drawing boards. It is estimated Stillwater will produce 26,000 oz platinum and 78,000 palladium annually. Exploration program

The platinum-palladium mining operations are taking place on the west side of the valley; an exploration program is in progress along another three-mile stretch of the 28-mile strikelength on the east side, where a tunnel-boring machine is being assembled for use.

Also in the works is a second mine located about 10 miles northwest along the same strike length. Darling said this second site is, at the moment, a two-party project involving Chevron and Manville (the two companies owning most of the claims there). Exploration work could begin soon at this new site.