quite a day for this one. Down $3.85 to 2.15 on 1.7 million shares.
news release follows. has it got any bounce in it tomorrow?
TTED BY CANADIAN CORPORATE NEWS
FOR: ANVIL RANGE MINING CORPORATION
TSE SYMBOL: ARO ARO.U
NOVEMBER 20, 1996
Anvil Range Announces Temporary Suspension of Mining
Operations
WHITEHORSE, YUKON--
Not for distribution to U.S. newswire services or for
dissemination in the United States.
Anvil Range Mining Corporation announced today that as a result of
weak metal prices, the strengthening Canadian dollar and
production output below budgeted levels, mining operations will be
temporarily suspended as of December 20, 1996. The mill will
continue to process stockpiled ore during the first three months
of 1997 and operations will be reviewed during that period based
on prevailing conditions.
Anvil Range owns the Faro Properties, one of the largest producing
base metal properties in the world. The properties, located near
Faro, Yukon, contain one of the world's largest zinc and lead
mines, and one of Canada's largest silver mines. The Company's
common shares trade on The Toronto Stock Exchange, under the
trading symbol ARO, its silver royalty units trade under the
symbol ARO.UN and its convertible debentures under the symbol
ARO.Db.
Attachment: Letter from President & CEO to Stakeholders of Anvil
Range
November 20, 1996
To The Stakeholders of Anvil Range:
Over the past two months and continuing into November, Anvil Range
has experienced production problems in its mining and milling
operations. In addition, the lower production of zinc and lead
concentrate has come at a time when metal prices have been
decreasing and the Canadian dollar has strengthened. Although
there is optimism that the recent production problems in the mine
and mill may be behind us, current metal prices and the strength
of the Canadian dollar over the next several months are continuing
concerns.
Therefore, Anvil Range has decided to take action at this time to
preserve its finances by discontinuing its mining operations. We
will continue to run the mill on previously stockpiled ore to
produce concentrates at a level of about 50% of our intended
output of 480,000 tonnes per year. By taking this action now,
Anvil Range believes it will be in a better position to take
advantage of any increases in future metal prices if they should
occur.
Although this action may appear to be severe, Anvil Range believes
that this course of action is prudent and in the longer run has
fewer risks. It will also conserve our metal reserves for the
future. We regret very much having to take these actions at this
time as we are deeply cognizant of the hardships this may cause
for our employees, our customers and our suppliers. However, the
long term future benefits that are generated by a successful
mining operation are most important.
Anvil Range will continue to run its normal operations until
December 20, 1996 and at that time will commence the action as
described above. Assuredly our action will raise several
questions that you will want answered by our senior management.
We ask for your patience and we will return your calls as soon as
we are able.
Sincerely,
Kurt A. Forgaard President and CEO
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