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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsnow who wrote (3186)	11/16/1997 9:13:00 PM
From: goldsnow	Respond to of 116818

Another round of exuberance next week. Nikkei and Hang Seng are sharply higher. US futures up over 6 points.Would likely see short covering all week. Ironically good for gold short term as it does abort flight to so labeled "quality". I the meantime the following should be now a weekly occurence .c The Associated Press DARWIN, Australia (AP) - Plummeting prices on world gold markets have claimed a victim in Australia's outback. U.S. mining and exploration company Pegasus Gold Inc. has announced the closure of its Mount Todd mine and losses of nearly $433 million. Operations at the Mount Todd mine, about 230 miles south of Darwin in the Northern Territory, will be suspended after a review found it was uneconomical at current world gold prices, the Spokane, Washington-based company said Saturday. Mount Todd is one of Australia's largest gold mines, and has unique business arrangements with the Jawoyn Aboriginal people, who gave up special land rights to become involved in the project. The mine was held up as an example of how Australia's contentious Aboriginal land rights laws were not a barrier to investment and development in resource projects. The suspension at Mount Todd is believed to be the first closure in Australia directly attributed to the downturn in global gold prices, and follows news that Germany's Bundesbank had begun lending up to 10 percent of its gold reserves. That news came on top of the Swiss government's announcement in October that it plans to sell almost a third of its reserves, which send world gold prices tumbling. ''It no longer makes sense to operate Mount Todd given the deterioration of the gold price and cost structure of the project,'' Pegasus president and chief executive officer Werner G. Nennecker said in statements released in Spokane and Katherine, near the mine site. Pegasus recorded a net loss of $432.8 million in the third quarter of 1997 after writing down gold mining operations. AP-NY-11-16-97 1517EST