Buchans River expands in Labrador

Intrigued by a geological study released by the Newfoundland Dept. of Mines in 1994, Buchans River (BUV-V) has staked ground covering anomalous palladium, platinum and gold values from layered gabbronorite and gabbroic rocks of the Lower Proterozoic Ossok Mountain intrusive suite.

The 1994 study described the rocks of the Ossok Mountain intrusive suite as having potential for nickel and platinum group elements. Anomalous values were reported from several previously collected samples.

The claims are near the Trans-Labrador Highway, about 100 km east of Labrador City. Buchans River says it is not aware of any previous exploration for PGEs in the area. A prospecting program is planned for the coming field season.

A wholly owned subsidiary of Normandy Mining (NDY-T) has agreed to sell its control block of Cheni Resources (CHB-T) to a group headed by Quest Ventures.

The purchasers will take up to 9.4 million Cheni shares for 38 per share, thereby generating proceeds of $3.5 million. Cheni has been relatively inactive since the early 1990s, when it ceased operations at the Lawyers gold mine in the Toodoggone district of northwestern British Columbia.

An Ontario court has granted United Keno Hill Mines (UKH-T) protection from its creditors until at least March 16.

The company has been engaged in court proceedings initiated by creditors holding miners’ liens at the company’s silver properties at Elsa, Y.T. The stay of proceedings granted in the recent court orders gives the company some breathing room to negotiate a restructuring program with its stakeholders and creditors.

United Keno Hill recently entered into a financing agreement with a Nevada firm that has agreed to help it arrange working capital and construction capital. The company hopes to complete a preproduction rehabilitation and underground development program at its mines and mills in order to resume commercial production.

The silver-lead-zinc mines at Elsa began producing in 1947. Operations were suspended in 1989 owing to low silver prices.

Toronto-based Goldstake Explorations (GXP-T) recently raised $500,000 and plans to use the proceeds to fund work at its mineral properties and to market a software management system.

The company plans to explore a nickel-cobalt-platinum-palladium property in Europe and fund recovery costs at its gold properties in South Dakota. Meanwhile, its technology subsidiary will market software to business clients, including those engaged in e-commerce.