Exploration continues at Kidd Creek

Texasgulf will undertake a major exploration program this year in the vicinity of its Kidd Creek mine in northern Ontario. This follows in the wake of its recent discovery of zinc-lead-silver mineralization 7,000 ft. northwest of the mine and the outlining of an additional zinc-silver deposit.

The company would neither confirm nor deny that it has moved a drill rig to the area of the recent discovery. Chairman Charles Fogarty says the satellite zone could be “very profitable to mine.”

Gov’t spending out of hand

While almost every politician in the country is busy trying to get Quebec to stay in (or out) of confederation, the nation’s social and economic structures are being left to rot away.

Canada is a richly endowed nation that is in grave danger of squandering its heritage,” noted Rio Algom Chairman Robert Armstrong in an impassioned talk at his company’s annual meeting. He attributed the deterioration to the rapidly expanding role of governments.

So far, we have passively allowed governments to spend 43 cents of every dollar people earn. The comparable figure for 1974 was 39 cents, and it was just under 30 cents in 1964.

The impact of these increases has been largely concealed. Forecasts for the fiscal year 1977-78 have the deficit running at $6.5 billion, which is financed by borrowing and the printing of new money.

From October 1970 to October 1975, the country’s money supply was expanded by just over 100%, while the real growth in the economy was only 31.7%. Inflation was 55.3% over this period.

Gold auction proves positive

April’s trend in the bullion markets, after a nervous start, was steady to firm until mid-month. The International Monetary Fund gold sale at the average price of US$149.18 — the highest since the series of auctions began — pleased most central banks.

The announcement by the U.S. Treasury that there were no immediate plans to sell American gold generated new buying, as well as covering of substantial short positions in Hong Kong and North American futures markets.

However, these purchases could not push the price above its recent trading high of $154.25.

Higher earnings for Teck

Shareholders of Teck should indeed be cheered by the company’s 6-month report. It shows substantially increased earnings, improved operating performance, and higher oil and gas revenue. In short, it suggests the company will make much progress in the Canadian resource industry.

Net earnings for the six months ended March 31, 1977, more than tripled to $1.8 million (or 26.4 per share). Working capital of $6.1 million was up from $3.9 million a year ago.

Gold price helps Dickenson

Although the past year was described as a “rough one” for Dickenson Mines, things are again looking up for this veteran gold producer in Ontario’s Red Lake area.

“If the price of gold holds at current levels, 1977 should prove to be at least a satisfactory year — certainly not a loss year,” says Mine Manager Robert Tapper, who addressed shareholders at the annual meeting.

Combined production from the Dickenson and Robin mines has returned to 5,000 oz. per month; the monthly milling rate is 12,000 tons.