News Release

For immediate release                                            December 18, 2001

QUARRY TO BE ESTABLISHED WITH GOVERNMENT OF CANADA ASSISTANCE 

RIVER DENYS, N.S. -- Rare red marble deposits near River Denys are the focus of a small, specialized marble quarry operation being established by MacLeod Resources Limited. The site access and preparation, acquisition and installation of specialized equipment are being carried out by the company with Government of Canada assistance.

The total estimated cost of the project is $554,602. Enterprise Cape Breton Corporation (ECBC) will make a repayable contribution of $231,301 through the Business Development Program. Six full-time equivalent jobs will be created. 

"This is an exciting project that will develop an industry on Cape Breton Island which is primarily export oriented which also has the potential for spinoff value-added processing operations. The Government of Canada is pleased to offer its support to the entrepreneurs involved in this resource-based enterprise," said Rodger Cuzner, Member of Parliament for Bras d'Or-Cape Breton, speaking on behalf of the Honourable Robert G. Thibault, Minister of State for the Atlantic Canada Opportunities Agency and ECBC. 

"We believe the marble from our quarry operation will be a hard, top-quality stone that will be very popular in the market, especially the export market. We are looking forward to this new venture and appreciate the support and faith in our abilities demonstrated by the Government of Canada," said Christopher Trider, President, MacLeod Resources Limited. 

Work is underway now on site preparation, and the company is aiming to start production in early May of 2002. The MacLeod Resources operation will continue a long and amazing history of marble quarry operations on Cape Breton Island, according to Mr. Trider. A large dimension stone industry existed at Marble Mountain from 1870 to 1920 and Cape Breton marble was shipped all over the world. 

This is phase one of a three-phase development with phases two and three involving building and equipping a processing facility for further value-added activities. Phase one will involve the extraction of the marble in commercial size blocks and on-site cutting of unpolished slabs. This will allow for a wider range of possible uses and greater revenue. Material that is fragmented will be sold as aggregate which is not as profitable but could lead to the establishment of a terrazzo tile manufacturing operation. 

The rare, deep red and grey-blue marble found at the Kennedy Big Brook deposit will be exported or marketed to Canadian companies to replace imported marble. The reserves on the site are estimated to be significant enough to allow for many years of production. 

If phase one is successful and the company adds to its processing capability, phase two will involve an additional building with cutting, polishing and fabricating equipment. This would allow the company to do the value-added work on Cape Breton Island and provide a capability to develop additional known marble deposits for quarrying and processing. 

Funding for this project was provided for in the February 2000 Federal budget and is therefore built into the existing financial framework.

Enterprise Cape Breton Corporation offers programs in support of economic development initiatives and is responsible for delivering ACOA's programs on Cape Breton Island and in the Mulgrave area.

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FOR ADDITIONAL INFORMATION CONTACT:
Jennifer Savoy
Minister Robert G. Thibault's office
Tel: (613) 941-7241
Fax:(613) 941-7844

Tina Thibeau, Communications Assistant 
Office of Rodger Cuzner, MP 
Cell: (902) 578-5547

Marcie Stanley 
ECBC Communications 
Tel: (902) 564-7876
Fax:(902) 564-3825

Chris Trider, President 
MacLeod Resources Limited
Tel: (902) 895-0766