Januard resigns as head of Total Energold

At the meeting, Januard gave no hint of his decision to accept a position with a Toronto investment firm while he discussed the performance of the company during 1988 and its prospects for the future.

Effective July 1, 1989, his position will be filled by Raymond Leeks, vice-president finance at Total Petroleum’s Denver office, while Kerry Sully will replace Januard as head of Ranchmen’s Resources, one of two oil and gas subsidiaries.

Calling 1988 “a year of consolidation,” Januard highlighted the trong performance of the company’s oil and gas interests which enjoyed increased production and revenues in 1988.

“It was, however, a difficult year on the mining side,” Januard noted, making specific reference to the company’s 37% stake in the Mount Skukum gold mine in the Yukon and the wholly-owned Erickson gold mine in northern British Columbia.

Because of production suspensions that are still in effect at these operations, the company’s share of production declined to 21,996 ounces, less than half the record production of 53,245 ounces achieved in 1987. Although exploration is continuing at both mine properties, neither are expected to be back in production this year.

Januard said the company has been directing its efforts to asset- building in recent years in order to diversify and reduce the vulnerability associated with operating what he termed “stop-and-go” mines in northern regions.

The key element in this strategy was the 1988 acquisition of Getty Resources and its main asset, a 49% interest in the Tundra gold project in the Northwest Territories. The project has a mineral inventory reported at 32.5 million tons grading 0.2 oz gold per ton, however, it also has refractory gold mineralization and a remote northern location.

Now that a major shaft sinking program is completed and an underground exploration program is about to begin, Total Energold and its shareholders will no doubt be anxious to see if the $136.9 million acquisition price was justified.

The Tundra project will account for $9.5 million of Total Energold’s $17.8 mineral exploration budget for 1989. This year’s program will include underground drifting, crosscutting and about 60,000 ft of underground drilling to result in a feasibility study next year. The objective is to confirm the continuity, mineability and economic viability of the deposit.

At the company’s annual meeting, Januard stressed that Total Energold’s future in mining “will not hinge on Tundra.” Specifically, he outlined encouraging results from the 50%-owned Logan zinc-silver project in southern Yukon. The project has a geological inventory estimated at 7.5 million tons grading 7.24% zinc and 0.75 oz silver, with the upper portions of the deposit considered mineable by open pit methods.

Total Energold also has a sizeable stake in the Dome Mountain gold project in north-central British Columbia, but unresolved legal issues continue to stall this project.

In the United States, the company is launching an aggressive surface exploration program this year on seven, recently acquired properties in Idaho which are believed to have potential for bulk tonnage gold deposits.

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