‘ie Grim outlook for 1982 In the early part of any year it is normal to look back on the successes and failures of the previous year,- rationalize them and then just as quickly forget all about them and look forward to what the new year will bring. When we did this in early 1981, we knew the economy was in recession and that 1981 was going to be a difficult year. However, we consoled ourselves with the fact that 1982 was only 12 months away and surely that was going to be better. Now here we are in 1982 and we look forward to what can only be described as a bleak year. The economic conditions in western Europe, the United States and Canada are all very weak. Added to this, in North America, are the high interest rates which make it ever more expensive to put any new venture into operation, and therefore create jobs and the wealth we have all come to expect. One has only to look at the plight of the automobile industry to see what can happen.: Here we have an industry that has been one of the economic mainstays - of the continent. It failed to respond quickly enough to the requirement of smaller, more fuel efficient vehicles and this allowed the imports to make inroads. time all three of the major automobile manufacturers have However, since that injected large amounts of capital into playing catch-up. Much of this money was borrowed and borrowed at high interest rates. However, just about the time when they expected to reap the benefit of this high capital injection, the whole economy went into a slump. They were still left with having to pay back the money | and having to compete with countries such as Japan ee / who rarely” suffer from: strikes’ or slow-downs. and “Who have a tradition for producing products ‘that are high in quality. . The result is massive lay-offs and more recently, to try and stem the tide of lay-offs, Unions actually negotiating pay and benefit reductions in their contracts. The resource industry has been similarly affected. Those same weak economic conditions and high interest rates have depressed the prices of most metals and other minerals to extremely low levels. In many cases, in terms of real value, down to the lowest price they have been for 50 or 60 years. The lack of money in the marketplace has also affected the housing market, which in turn affects the lumber industry which is the number 1 industry in British Columbia. As a pmentiactien of industrial minerals, many of which go into sewage and water pipes for the housing industry, the asbestos ‘industry has also been hard hit, and certainly Cassiar Resources is no exception. There are many forecasters. of economic and financial conditions. At best this is a risky business and pro- bably best left to Astrologers and Economists who have a very high opinion of themselves. However, the more conserv- ative forecasters and even those that always look to the future _ with rose tinted glasses say there is slim chance of significant improvement in economic conditions during at least the first three quarters of 1982. What then can we look forward to over the next 12 months. Most mining companies agree that the trick right now is to stay in the game, tighten belts, make economies where- ever possible and yet be ready when the upturn finally does come to take alvantage of the expanding marketplace. Continued on Page 2 Jade hearing postponed The preliminary hearing regarding the charges of theft over $200 and possession of stolen property exceeding $200 against Ray Joseph Empereale, Clark Montieth and Salvatore Latorre has been postponed until March 12, 1982 because of the non-avail- ability of some witnesses. These charges relate to a quantity of jade allegedly stolen from Cassiar Resources in September 1980, Cassiar Courier the Voice of Cassiar Country Noted 1982 _ 10 cents CABINET COMMITTEE ON ECONOMIC DE VELOPMENT — VICTORIA’ — The Cabinet Committee on Economic Development will make a five day tour of Northern British _ Columbia on Feb, G12) The northern swing comes on the seals BF a , two ee Cabinet Committee on Economic Development visit to Vancouver on January 25-26. Energy Minister, Bob McClelland, Chairman of the Committee, said the two missions reflect the Cabinet Committee on Development’s commitment to travel throughout the prov- vince to discuss economic and industrial issues and to visit local _ industrial sites and projects. The northern tour will take the committee to Fort St.John, Fort Nelson, Cassiar, Atlin, Dease Lake and Stewart. “The aim of these tours is to strengthen our dialogue with people in those areas who are concerned and involved with Economic Development issues,” McCelland said. ““By meeting with the people on the scene -- the people with detailed knowledge of local problems and requirements - the Committee gets a far better feel when it comes to assessing development policies and programs.” Heading north with McClelland are highways Minister Alex Fraser, Forests Minister Tom Waterland, Labour Minister Jack Heinrich, ‘Agriculture and Food Minister Jim Hewitt, Industry and Small Business Development Minister Don Phillips and Lands, Parks and Housing Minister Jim Chabot. ~ Several Deputy Ministers and other government officials will also accompany the committee. Highlights of the tour include public meetings at Fort St. John, Fort Nelson and Cassiar, plus tours of Cassiar Resources and Granduc and Scottie Gold near Stewart. The Committee will - also. meet with Municipal Officials and representatives of the local business community in the various towns. “These tours are extremely worthwhile because they allow people who live in the area an opportunity to have a say in the development of their community,” McClelland said. For further information contact: Mr. Bill Bachop, Director — of Communications, 387-5178. Plaza Mine In Receivership In a recent interview with Rolly Trenaman of Trenaman, Spencer & Associates, the situation at both the Plaza and United Hearne Mines was discussed, The Plaza Mine is at the present time in receivership. Mr. Trenaman mentioned that a number of factors contributed to this state of affairs. The company had raised 3.5 million dollars for the mill construction by an under- writing. However, it turned out that the company requirements to complete the mill, plus meet pre-production mining costs were in excess of this and the bank was approached for further funds for working capital. They asked for a financial projection and because of a tightening in money supply, refused to provide additional funds. /t was thought that a high percentage of the gold concent- rate would be jig. However, only approximately 20% of the gold came off the table and 80% off the float. It takes longer to re- ceive payment for the float which resulted in a shortage of cash flow. The bank then recalled their loan with the result that the company had to be placed into receivership, Thorne, Riddel & Company being the receivers. All stockpiles at the mill have been milled and it is expected that the payment for the gold recovered will clear the debt with the bank. There are various options open to the remaining creditors. One possibility is that the whole operation could be sold. The mine is technically a viable operation even at today’s prices. One possibility is that Plaza could come up with additional funds. The ore is there and under careful management a profitable operation could be achieved. There is another possibility that the creditors may decide to defer payment and in the Spring operate — the mine themselves in conjunction with the shareholders of Plaza. United Hearne is in a better position than Plaza although they have been affected by the events at Plaza. -They are continu-. ing operations on a “pay as you go basis”. This requires a good deal of economizing and switching of emphasis since the price of gold is substantially lower than what the feasibility study wes based on, Rolly Trenaman has taken over the management of the operation completely forthe next 2 or 3 months. A number of . employees have ‘been laid off. The emphasis is being based on get- ting more ore to the mill so more experienced miners have been hired, The result is that all ore is coming from underground with 150 tons a day being the objective. Fortunately at United Hearne the jig runs at approximately 40% and the float at 60%, thus providing a slightly larger cash flow to pay for essential services such as payroll, etc. Mr. Trenaman said that the immediate objective of the company is to survive the “down period” in the industry and the company is supported in this stand by their major backer - the Bank of Commerce.