LETTERS TO THE EDITOR (October 21, 1991)

Incorrect ownership was reported in the story “Montanore adit reaches 11,330 ft.” (T.N.M., Sept. 16/91).

The Montana copper-silver project in question is owned 45% by Montana Reserves Co. and 55% by Noranda Minerals, a unit of Noranda Inc. Operator is Montana Minerals.

Noranda has invested more than $90 million in the project to date. The Montanore is a major project and I invite you to have your representatives visit the operation at Libby, Mont.

H.F. Magnuson

Chairman

Montana Reserves Co.

Spokane, Wash.

To the geologist who prefers the metric system to quote grades (“Geologist prefers metric system,” T.N.M., Oct. 7/91), I’d like to say “forget it.”

Why should I bother to follow the wishes of any government which instituted this policy? It may be based on logic as our geologist says, but I believe it was a political statement made by a Communist sympathizer who wanted to follow his European friends more than Canada’s natural friend, namely the U.S. What’s more, I didn’t even get a chance to say “no” in a referendum or any election where metric was a well discussed issue. It was rammed through and I’ll resent it for the rest of my life.

Jeff Robinson

Ottawa

In the article “Gold hedgers’ hesitation may cost them millions” (T.N.M., Sept. 23/91), Nesbitt Research analyst Egizio Bianchini is quoted indirectly as saying that “producers missed their big chance to hedge in January when gold prices were climbing in response to the Gulf crisis.”

Hedging techniques are similar to buying and selling commodities and on that basis one does not predict whether prices are high or low or what a particular price will be but makes an estimation of the direction of trend. When the trend is rising, gold miner hedgers should not hedge. Those hedgers would take action when the prices stop rising, that is, when the trend changes and starts down.

Consequently, as gold prices are rising, miners should not hedge. When gold prices are falling, as they are now, miners should hedge because no one knows how far the trend will go. It seems Bianchini is giving weak advice. Hebert Drechsler

President

HDD Resource Consultants

Vancouver

Regarding the spill of Matachewan Consolidated Mines’ tailings last fall, I do not pretend to understand the legal aspects of the situation, but I do not consider that the blame lies with the mine.

Owing to the low price of furs, there were more beavers than usual working on the dams at the lake in question. There was an excessive amount of rain last fall. The pressure from the water was too great and a beaver dam broke causing the mishap.

It might be considered an act of God. But if blame were put on anyone it should be directed against the Ministry of Natural Resources. I am under the impression that it is the ministry’s job to control the beaver population, and keep a watch for situations where flooding might occur if the dams were built too high, or if dams broke.

Your article reported that Matachewan Consolidated (T.N.M., Sept. 23/91) may have to dispose of all its assets to pay legal costs. This would mean that it would cease to carry on business. I see that the trading of Matachewan shares is already suspended on The Toronto Stock Exchange.

I remember when the Matachewan Consolidated came into production in the early 1930s during the worst of the depression. The Young-Davidson mine and the Ryan Lake mine made Matachewan into a nice little town. The first two mentioned closed in the 1950s. Ryan Lake is still working I believe under the name of Extender Minerals. More ore has been found near Young-Davidson and there is hope of another mine opening.

We need mines with a record like Matachewan Consolidated to search out new orebodies and create new mines. To put a mine like that into bankruptcy for something it had no control over is a big mistake.

It must be remembered that it is over 35 years since the Matachewan Consolidated mine closed its gates. There was no complaint made then about the way the tailings were left. For 35 years there was no complaint. Yet after that length of time when something happened that the mine had no control over, the blame is immediately placed on them. The company should be absolved of any blame and reimbursed for any expenses incurred. Dave Attwater

Kirkland Lake, Ont.