Doug Ashbury
Northern News Services

NNSL (Jun 19/98) - BHP will not conduct a summer exploration program at its Hope Bay Boston gold belt property, the company confirmed Wednesday.

The move means loss of jobs and loss of expediting and other Yellowknife businesses associated with exploration.

Thirteen seasonal exploration jobs are directly effected with about the same number of jobs indirectly affected, BHP spokesperson Graham Nicholls said.

The decision not to go ahead with a summer exploration project this year was linked to the company's "exploration budget status" and the depressed price of gold, he said.

But BHP will continue to keep its Hope Bay camps -- Boston, Windy and Wolverine -- open to conduct environmental baseline study There will be no drilling.

Nicholls would not say how much had been cut from the company's Boston exploration budget. He did say that over several years, BHP has spent tens of millions of dollars at the site.

BHP is now looking for a partner to come on board its Boston gold project, the most advanced resource project in the Coronation Gulf mineral development area.

The company continues to seek a partner for the project, Nicholls said. The partner would likely be a major mining company.

Asked if a potential deal with a partner had fallen through, Nicholls said: "We feel it is appropriate to bring in another participant. We want to say our interest is in resuming activity. We don't know when we will finalize this new relationship. We certainly intend follow through with a joint venture."

He preferred not to divulge which companies BHP has had talks with about a joint venture.

Braden Burry Expediting president Gord Stewart said when it comes to exploration expediting work it has been a slow summer.

"There are not a lot of companies doing grassroots exploration."

Stewart said it is unfortunate that the program has stalled but he does not believe the window of opportunity has shut completely for this year.

He said much of the effects will be felt by summer students who expected a full season's work.

When it comes to revenue for Braden Burry, the bulk of the work has already been expedited, Stewart said.

Equipment and supplies were flown to the site earlier, said Stewart. That means if BHP decides to resume exploration, it can begin quickly.