Camreco plans drilling program

With arrangements made with MVP for $1.5 million flow-through funding, Camreco Inc. plans a major drilling program on its northwestern Ontario properties including its recently acquired Goldlund Mines claims.

Goldlund, which is now a wholly- owned subsidiary of Camreco (N.M., Jan 12/87) has 83 contiguous mining claims in Echo and McAree twps., northeast of Dryden, Ont. Ore reserves are estimated at 200,000 tons with a grade of about 0.18 oz gold per ton.

Among the facilities on the property are an operating mining and milling plant in the final stages of construction and a 3-compartment 825 ft shaft.

Camreco President Matthew Gaasenbeek, in the annual report, says little drilling has been done below the 400 ft level at the Goldlund property and at Camreco’s adjacent 19-claim property to the west. The Camreco property has about 300,000 tons, when diluted averaged an uncut grade of 0.28 oz gold per ton and a cut grade of 0.17 oz.

About three miles south, at the 88-claim Laval Twp. property of Mistango Consolidated Resources, a company in which Camreco has a 38% stake, a small drilling program completed this year showed the granodiorite band which runs through the combined Camreco/ Goldlund properties seems to extend into the Mistango properties.

Mr Gaasenbeek says as a result Camreco acquired an additional 25 claims between the Mistango Laval property and the Camreco/Goldlund properties and now owns or controls a total of 215 claims covering over 13 sq mi.

A new airborne survey of the entire area may be done as a prologue to an extensive drilling program, says the president. He notes the last incomplete airborne surveys were made more than a decade ago.

Looking at the financial side, the company’s net earnings and cash flow dropped as a result of lower production from the company’s oil and gas operations. For the year ended Dec 31, net earnings amounted to $78,258, down from $95,273 in 1985. Cash flow was $484,378 compared with $691,614 for 1985.

During the year 1.8 million shares were issued in connection with the Goldlund transaction and a further 4.5 million shares were issued in connection with the acquisition of Boone Plumbing Supply. Total common shares outstanding at year-end amount to 14,195,203 shares.