Some U.S. miners downsize Canadian operations

As 1992 comes to an end, many American mining companies have either closed or are planning to downsize their operations in Canada.

Battle Mountain (Canada), a unit of Battle Mountain Gold (NYSE), announced recently that it would close its Canadian operations early in 1993. The Houston-based company cited low gold prices and a third-quarter loss of US$32.9 million as the main reasons for the closure.

In 1990, Battle Mountain made a significant new gold discovery on Queenston Mining’s (TSE) Amalgamated Kirkland property in Teck Twp., near Kirkland Lake, Ont.

The discovery, known as the 102-103 zone, has a strike length of 5,000 ft. and remains open at depth. To date, the best drill intersection from the zone is 0.17 oz. gold per ton over 100.4 ft. (T.N.M., April 6/92). With Battle Mountain’s departure, ownership of the property will revert to Queenston. Although its Canadian office in Toronto remains open, Gold Fields Canadian Mining, a unit of Gold Fields Mining of Denver, terminated all of its staff in November. A company spokesman said that the company is reviewing its staffing requirements and is still actively seeking new opportunities in Canada.

After a successful takeover of International Corona, Homestake Mining (NYSE) announced that it would be closing its two offices in Eastern Canada and reducing staff in its Vancouver office. Closure of Homestake’s Timmins office has prompted concern among the local mining community over the future of the historic Hollinger Consolidated Gold Mines’ exploration files. The files have had a succession of owners over the years starting with Hollinger, then Hollinger-Argus, later Esso Minerals Canada, and now Homestake.

Homestake plans to move the files to Vancouver for further evaluation. The company has indicated that once an evaluation is completed, some of the data might be made available to the local Timmins museum.

Cyprus Canada, a subsidiary of Cyprus Minerals (NYSE), recently closed its Western Canada field office which was established in 1985. The company has shifted its emphasis to exploration in Eastern Canada. All exploration projects will now be run out of the Timmins field office which was opened in January, 1992.

One American company that continues to buck the trend of office closures in Canada is Asarco Exploration, a unit of Asarco (NYSE) of New York. Asarco Exploration has been quietly working away in Canada since 1948. The company recently reached an agreement with Lac Minerals (TSE) concerning 95 patented claims and 52 licences of occupation in Ontario’s Geraldton Mining camp. Asarco can earn a 51% interest in the property which includes the former gold producers Hardrock, McLeod Cockshutt and Mosher by spending $5 million on exploration and development over the next five years.

Asarco also plans to continue work on its 100% owned Aquarius gold project east of Timmins in mid-1993.

Two other companies that recently re-entered the Canadian exploration scene are Kennecott Canada, a subsidiary of Kennecott, and Phelps Dodge Corp. of Canada, a unit of Arizona-based Phelps Dodge (NYSE). Both companies maintain offices in Vancouver and Toronto and are actively exploring throughout Canada.