LETTERS TO THE EDITOR (December 09, 1991)

Regarding the editorial “When Ottawa sells gold” (T.N.M., Nov. 18/91), I find it difficult to understand how it is in the best interest of the country to be dumping our gold reserves on world markets at a time when the price of gold is falling.

The mining industry is in the midst of a significant downturn and one would expect that our federal government would be interested in trying to stimulate this important sector rather than contributing to its problems. Our federal government seems to be blind to the fact that stimulation of gold exploration would create economic activity and much needed jobs in those areas of the country where unemployment is highest, namely Newfoundland, northern Quebec and northern Ontario.

We know that such activity leaves significant dollars in the communities close to the exploration areas.

Not only has the federal government destroyed investor enthusiasm for flow-through shares, it is now contributing to low gold prices. I would encourage all of us in the industry to write to our local MP, as well as federal ministers, expressing our dismay at the government’s lack of foresight.

Your editorial was most timely and I would encourage you to keep this issue in the forefront until our government comes to its senses.

Gerald McConnell

President

NovaGold Resources

Halifax, N.S.

Your editorial “Time to head south” (T.N.M., Nov. 25/91) was, at best, inappropriate. Citadel Gold Mines has owned ground in Jamaica for the last year and the only company representative to visit the island was the president, who also carried out geological mapping, sampling, research and project supervision.

It is surprising that just one week earlier, you can report significant grades from the initial phases of exploration and subsequently imply that Jamaica is just a holiday destination. “Gold is where you find it” seems to be an adage lost on The Northern Miner.

It would be interesting to check back issues of your newspaper from the late-1960s, when Cominco, Teck and Noranda were actively exploring on the island, to see if the editor made the same type of comment.

Quite frankly, your comments smell more like “sour grapes” than “grapes of wrath.”

Lynda Bloom

Manager

Citadel Gold Mines

Toronto