Placer, Outokumpu in joint effort

The exploration subsidiaries of two international mining companies have joined forces to launch a new exploration thrust for gold and base metals into certain East European and African countries.

Vancouver-based Placer Dome (TSE) and Outokumpu Oy each has a 50% interest in Placer Outokumpu Exploration, a London-based exploration management company recently incorporated in the United Kingdom.

Outokumpu Oy is an integrated mining, smelting and refining company based in Finland. Harold Knutson, Placer Dome’s manager of international exploration, said the company was pleased to have access to Outokumpu’s expertise and experience in Europe and Africa.

“The joint venture fits Placer Dome’s more aggressive approach to finding mines outside North America and Australasia, and covers territory that we believe holds much promise,” he added.

Placer also plans to open an international exploration office in Miami, Fla., to direct programs in South and Central America, and in Mexico. Despite its growing international focus, Placer Dome is also involved in two high-profile exploration/development projects in British Columbia. The company is completing a due diligence review of the Eskay Creek project north of Stewart before deciding whether to continue exploring and developing the gold/base metal project under the terms of a joint venture with International Corona (TSE).

At year-end, Placer Dome also expects to have completed a feasibility report and optimization studies for Mount Milligan, a low-grade gold-copper project north of Prince George.

The results of these studies are being anxiously awaited by the investment community in light of reports and rumors of escalating capital costs and lower than expected grades. Placer Dome paid over $250 million to acquire the Mount Milligan property in 1990.