Exploration ’88 BELMORAL

Belmoral Mines and its associated companies will spend more than $30 million in 1988 on exploration and development of existing operations and properties. They are located near Val d’Or, Que. and in the Timmins, Missanabie and Marathon areas of northern Ontario. Belmoral plans to drill about 70,000 ft down to depths of 1,000 ft on a number of known and indicated ore structures in the Batholith in Val d’Or. The company also plans 75,000 ft of diamond drilling underground in the Ferderber mine and about 55,000 ft of diamond drilling underground at the Dumont mine. This compares with about 89,000 ft of drilling at the two mines during 1987. The objective is the extension of known ore zones on strike and at depth. Still in the Batholith, on the Wrightbar property, 12,000 ft of underground diamond drilling is planned for exploration of the West ore zone at depth.

A joint exploration program is now being planned with Yorbeau Resources on its property which covers a major batholith in Pershing Twp., about 32 km east of the Belmoral property.

In the Rouyn-Noranda area of Quebec, an agreement was recently reached between Yorbeau Resources and Belmoral. According to this agreement, Belmoral is to complete the exploration program with a view to preparing for production at the Astoria mine. According to a June, 1987, calculation, the proven, probable and possible ore reserves on the Astoria property amount to 1.4 million tons averaging 0.179 oz gold per ton down to a depth of 1,500 ft. At this elevation, the main aw orebody is still open to depth and most of the previously obtained diamond drill hole intersections average in the 0.3-oz- gold-per-ton range. In 1988, Belmoral will deepen the present shaft to 1,500 ft from 500 ft and confirm the probable and possible ore by drifting and raising on several levels. In addition, diamond drilling from the bottom level will explore the further downward extension of the ore for at least another 500 ft. This work, which is estimated to cost about $10 million, will earn, for Belmoral, a 50% interest in the property.

In the Timmins area, on the Vedron property, work is now in progress to extend the decline to 950 ft from 500 ft and to complete 6,800 ft of drifting and raising in order to prove the previously indicated ore. The planned surface and underground diamond drilling totals 24,000 ft and 44,000 ft, respectively. This drilling will define the known ore as well as test a number of potential ore targets.

On the Broulan Reef property, dewatering of old workings, which began early in 1987, is nearly completed and the deepening of the shaft to 3,603 ft from 2,556 ft is planned for this year. Drifting on the bottom level, towards the previously indicated high- grade ore is scheduled to start before the end of the year.

Above that level, 2,200 ft of drifting and 18,000 ft of drilling are planned in order to explore ore indicated in the upper levels of the mine.

Canreos Minerals was still assessing its 1987 program in the Renabie area at presstime and had not clearly defined its 1988 program there. On the recently-acquired Melba property, 16 km north of Kirkland Lake, in Melba Twp., a 20,000-ft drilling program has just started. The purpose is to enlarge this gold deposit which was known up to now as small but high-grade.

In the Marathon area of northern Ontario, Belmoral has just acquired 97 claims in Welsh Twp., 40 km west of Marathon, or 48 km west of the Hemlo gold camp, and in the same volcano-sedimentary belt. Grab samples from a small pit averaged 0.142 oz gold per ton and an initial $100,000-program of geophysical surveys and diamond drilling is planned.