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Gold/Mining/Energy : United Keno Hill, UKH, Toronto**** Opportunity Knocks! -- Ignore unavailable to you. Want to Upgrade?

To: Alan Whirlwind who wrote (989)	6/19/1998 12:56:00 AM
From: The Lone Ranger	Respond to of 1348

Financing News To Come Soon By Chuck Tobin A director with the revitalized United Keno Hill Mines Ltd. says the company should know soon about financing to restart production in Elsa. Doug Goss said recently that representatives of Dynatec Corp., which has agreed to strike a joint venture arrangement with United Keno, will be at the mine site this week or next to assess how best to implement rehabilitation and start-up plans. The two companies announced earlier this month they'll pursue a joint venture agreement, under which Dynatec would provide half of the $22 million required in pre-production working capital. Under the proposal, Dynatec would also assist United Keno with securing the remaining amount of pre-production investment. Goss said the joint-venture agreement has not been signed, but both parties are committed to it. "Hopefully, by the end of the month, we will have everything in place," Goss said. "There are a lot of pieces here." The central Yukon mines were closed in January, 1989, and the townsite of Elsa essentially abandoned. Dynatec is an international contract mining and metallurgical company, Goss said. "They are up there right now to see how they are going to implement the whole mine rehabilitation and the mill rehabilitation." Goss said it's still United Keno's intention to be back in production around October. While the metal markets have taken a pounding recently, the price of silver has remained relatively buoyant. It opened this morning at $5.27 US. United Keno chair Stephen Powell said Monday he can't say definitively that the price of silver will stay strong, since he can't predict the future. But if you look at the silver picture globally, stockpiles of the precious metal are being used up faster than they are being replaced, Powell pointed out. He said the Comex Commodity Warehouse in 1995 reported 330 million ounces in above-ground silver inventory. It's now reporting 85.9 million ounces in inventory, Powell said, adding the annual demand has recently been outweighing supply by 150 million ounces. "It is a very interesting story to me," said Powell. "I mean, here you are using more than we are providing from mining or recycling, and growth is continuing to increase.... Yeah, we are coming into a good market for silver." Powell said its encouraging when a company like Dynatec, which he describes as a premier mining operator, jumps on board and puts up half the money required for pre-production preparation. Not only is it willing to put up half, but it's also amenable to standing behind the attempt to attract other investors, he said. Powell, who is also optimistic United Keno will be back in production by this fall, said he's already stated his preference for hiring Yukoners over workers from Outside. "I think we would be safe to say we will use up to 100 people in the initial phase, and I believe 100 to 130 at any given time during operation." He said it will be a camp operation, with employees spending a given amount of time working at the camp with a given number of days off. With the 30 million ounces of silver already identified by United Keno, there is enough paydirt today to keep the mine working for eight to 10 years, said Powell, who also served as United Keno's chief executive officer. The long-term plan, he reiterated for the company, is to start putting money in the bank, then developing the nearby Marg deposit. That deposit was brought to the table as an asset of NDU Resources when it merged with United Keno this past winter. Developing Marg would require a newer and larger mill that would significantly increase daily production capacity, said Powell. Such a boost would reduce the cost of production by as much as 65 to 70 cents per ounce of silver. "That is substantial," Powell said. "This is the start - get-going-and-put-the-money-in-the-bank phase. And the next phase will be to prove up Marg; build a new mill." All content c1997 The Whitehorse Star Site hosted and served by Internet Yukon Inc. BearDesign 1998 yukon.net:80/Star/Home.html

To: Alan Whirlwind who wrote (989)	6/19/1998 8:26:00 PM
From: The Lone Ranger	Respond to of 1348

06/19/98 - 15 Trades for UKH Ex Time Price Change Volume Buyer Seller Marks T Jun 19 15:46 0.50 -0.02 3500 009 Nesbitt 092 Pollitt K T Jun 19 15:46 0.50 -0.02 5000 033 Canaccord 092 Pollitt K T Jun 19 13:50 0.53 0.01 2000 002 DS 002 DS K T Jun 19 12:42 0.50 -0.02 4000 039 Midland 007 Green Line K T Jun 19 12:42 0.50 -0.02 3500 039 Midland 092 Pollitt K T Jun 19 11:43 0.50 -0.02 1000 033 Canaccord 092 Pollitt K T Jun 19 11:27 0.50 -0.02 1000 088 Versus 092 Pollitt K T Jun 19 11:27 0.50 -0.02 2500 009 Nesbitt 092 Pollitt K T Jun 19 11:07 0.50 -0.02 1000 009 Nesbitt 092 Pollitt K T Jun 19 11:00 0.50 -0.02 1500 007 Green Line 092 Pollitt K T Jun 19 11:00 0.50 -0.02 1500 039 Midland 092 Pollitt K T Jun 19 10:59 0.50 -0.02 8500 007 Green Line 034 Maison Placement K T Jun 19 10:59 0.50 -0.02 8500 039 Midland 034 Maison Placement K T Jun 19 10:59 0.50 -0.02 4500 009 Nesbitt 034 Maison Placement K T Jun 19 10:59 0.51 -0.01 3500 009 Nesbitt 034 Maison Placement KL Friday June 19, 3:37 pm Eastern Time NY precious metals end sharply higher on dollar NEW YORK, June 19 (Reuters) - COMEX and NYMEX precious metals futures ended sharply higher Friday, driven by further weakness in the dollar against the world's major currencies as well as further concerns about the health of emerging market economies, traders said. ''Gold's strength today was largely driven by the dollar's weakness, which prompted more fund shortcovering, but there has also been less producer selling than expected from Australia and South Africa, and the threat of European central bank gold sales is also fading,'' said Chase Manhattan managing director for global commodities, Dinsa Mehta. COMEX August gold ended up $6.20 an ounce at $300.80, after seeing the highest level since late May intraday at $301.60. Total COMEX gold volume was estimated at about 50,000 lots, after a 2,845-lot fall in open interest Thursday to 175,497 lots, reflecting more shortcovering by funds. Spot gold in the bullion market ended quoted $298.50/00, compared to the London Friday afternoon fix at $297.75, and New York close Thursday at $293.20/70. Implied lease rates for gold were little changed around 1.15 pct per annum for one month and 1.85 pct for 12 months. ''Currency markets fear that this week's intervention by the Federal Reserve to prop up the yen and help fend off a devaluation of China's currency, may presage the emergence of something like the 1987 Plaza Accord to cap the dollar's rise, which should help to support gold,'' said Refco economist James Steel. ''But Russia's funding problems, and China's problems defending its yuan, are raising fears a second round of emerging market problems may occur later this year, which ultimately may also help gold's price,'' he said. COMEX July silver ended up 9.2 cents at a 10-day high at $5.352 an ounce, while spot silver in the bullion market ended quoted $5.37/40, compared to the London Friday fix at $5.2950 and the New York close Thursday at $5.26/29. NYMEX July platinum closed up $4.80 at $363.00, while NYMEX September palldium ended up $4.35 at $290.55. More Japanese trade house buying of PGMs was seen overnight given the recovery in the yen, US PGM dealers said. But Russia has not been a seller of late and the expected talks this week between the Russians and the Japanese over renewing the annual supply contract have not eventuated, traders noted. In May the Russians returned to the PGM spot market after a six month hiatus, driving prices down sharply from the all time high seen in palladium.

To: Alan Whirlwind who wrote (989)	6/22/1998 11:03:00 PM
From: The Lone Ranger	Respond to of 1348

06/22/98 - 8 Trades for UKH Ex Time Price Change Volume Buyer Seller Marks T Jun 22 14:59 0.52 0.02 1500 019 Desjardins 034 Maison Placement K T Jun 22 13:34 0.50 0.00 8000 039 Midland 034 Maison Placement K T Jun 22 13:33 0.50 0.00 17000 039 Midland 034 Maison Placement K T Jun 22 13:33 0.50 0.00 3000 039 Midland 095 Wolverton K T Jun 22 12:23 0.50 0.00 1000 007 Green Line 095 Wolverton K T Jun 22 10:52 0.50 0.00 5000 007 Green Line 063 Levesque Beaubie K T Jun 22 10:52 0.50 0.00 1000 007 Green Line 063 Levesque Beaubie KL T Jun 22 09:30 0.50 0.00 100 094 094 092 Pollitt EKL