This news release puts CC in mothballs with the exception of some further proving up of the site. PDG is taking a hit today along with ABX. Appears that the POG is also dropping US$274.40 (Kitco) and US$274.20 (Yahoo). POG is down approx $2 from London high.
Strangely, PDG is down approx 2.77% and ABX is down 3.37%, one would have expected PDG to have dropped more than ABX based on the two factors.
Thought today would be a good day to daytrade PDG or ABX, didn't, now going to just sit back in the armchair and watch what unfolds.
Here is the complete PDG article on CC:
Monday, May 17, 1999
Money News
Price gloom dulls Placer Dome's Cerro Casale view
LONDON, May 17 (Reuters) - Dull gold and copper prices mean Canadian miner Placer Dome's (PDG-T) Cerro Casale gold-copper project in Chile is not worth developing at present, Chief Executive John Willson told analysts on Monday.
"I could not see that we will go forward with it unless we see better prices or unless we get a breakthrough on the technical side," Willson told a briefing.
A feasibility study, while uncovering evidence of 27 million ounces of gold and seven billion pounds of copper, had not met the miner's development criteria, he said.
"At current prices, it would not be a feasibility study because it would not demonstrate feasibility.
"We are working persistently to improve it," he said.
Placer Dome Inc. has allocated $100 million for its global exploration budget this year compared with $120 million last year, Willson told Reuters in an interview earlier this month.
About $60 million was for early-stage exploration, $20 million was earmarked for exploration around current mines, and about another $20 million would go toward exploring, doing feasibility work and obtaining water rights at Cerro Casale.
The gold major expects to produce 3.2 million ounces this year at a cash cost around $170 per ounce.
Spot gold opened on Monday eyeing 20-year lows down near $270, trading at $276.15/$276.65 after Britain's recent announcement of planned gold sales.
Three months copper on the London Metal Exchange was at $1,578/81 a tonne, up from its 12-year low of $1,371 hit earlier this year.
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