Difficulties in raising risk capital have prompted Skyline Gold (TSE) to defer further exploration on its claims in the Iskut River gold camp of northwestern British Columbia.
The company also announced that Placer Dome (TSE) recently elected not to continue a joint venture exploration effort on the Bronson Creek property adjoining the Snip gold mine operated by Cominco Ltd.
As part of the decision, Placer Dome will forgive a $4.3-million debt previously advanced to Skyline to fund administrative expenses and bank obligations.
Skyline plans to resume exploration on a number of targets as market conditions improve.
In the late 1980s the junior was the first gold producer in the Iskut River region, but the mine was closed after a short operating run because of high costs and difficulties in supplying high-grade feed to its mill.
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