News in Brief (October 03, 1988)

A drill program has been completed by Cross Lake Minerals (VSE) on the company’s Red Cross Lake property in Manitoba. The 6-hole program tested an iron formation unit with characteristics similar to those associated with gold deposits near Geraldton, Ont.

No significant assays were received from the core. Sampling did reveal anomalous arsenic values, ranging up to 20,000 parts per million.

Cominco (TSE) has reached an agreement, in principle, with IPSCO Inc. for the sale of Cominco’s interest in Western Canada Steel Limited for $18 million less certain adjustments to be calculated at closing. The sale is subject to the settlement of a formal agreement, is expected to close on Sept 30, and will be applied to further reduce Cominco’s term debt.

USMX recently reported a net loss of $183,000 or 1 cents per share on revenue of $300,000 for the second quarter ended June 30. This compares with a loss of $324,000 or 2 cents on revenues of $135,000 for the same period a year ago.

For the six months ended June 30, the company reported a loss of $343,000 or 2 cents per share on revenues of $620,000 compared with a loss of $606,000 or 5 cents per share on revenues of $195,000 for the same period last year.

The company attributed the increase in revenue to the minimum net royalty payments from the Montana Tunnels Mine and increased interest revenue derived from proceeds raised in the May, 1987 stock offering. The results for the period ended June 30, do not reflect the operations of the company’s Green Springs gold property which commenced gold production of July 29. The Green Springs mine, located 60 miles south-west of Ely. Nev., had produced 3,100 oz gold to date.

Bermuda Resources has changed its name to Ameritel Management Inc. (AEL:VSE) on a share-for- share basis.

Vista Mines (VAM) has been delisted from the Alberta Stock Exchange but will continue to trade on the Toronto Stock Exchange.

Chablis Resources has changed its name to Westhill Resources Ltd. (WHO:VSE) on a share-for-share basis.

Tarzan Gold (ASE) has entered into an agreement with Noranda Inc. (TSE) which gives Tarzan the right to earn a 50% interest in Noranda’s Joburke property near Timmins, Ont. Tarzan can earn the interest by spending $2 million on exploration over a 3-year period.

A diamond drill program, which will be completed by Feb 28, 1989, will test for the downdip extension of the main zones which were mined in the 1970s. At that time, 440,117 tons of rock grading 0.1 oz gold per ton was mined by Pamour Inc. (TSE).

Mahogany Minerals Resources has changed its name to International Mahogany Corp. on a 1-new- for-2-old share basis.

Algonquin Minerals (VSE) has optioned a 4-claim gold proiperty in Dent Twp. in the Red Lake mining division of northern Ontario from Ray Frank of Ear Falls, Ont.

An initial exploration phase of geological mapping and diamond drilling on the property will focus on proving the extent of the known mineralization where a gold zone 300 ft long by 300 ft deep by 6.7 ft wide grading from 0.24 to 0.87 oz gold was discovered by previous work in the 1930s.

Lightening Minerals has changed its name to Vangold Resources Inc. (VN:VSE) on a 1-new-for-4-old share basis.

Golden Shield Resources (TSE) announced it has entered into two private placement agreements with Middlefield Resource Fund 1988 pursuant to which Middlefield will purchase a total of $1 million worth of flow-through shares of Golden Shield at prices to be established in September and October 1988. The fund will be used to continue Golden Shield’s exploration programs on its properties.

Maverick Naturalite Beef Corp. has changed its name to Golden Iskut Resources Inc. (GIS:VSE) on a share-for share-basis.

USMX has finalized a $5.0 million credit facility arranged by merchant bankers Elders Resources Finance Inc. of New York. And loans made under the agreement will become non-recourse project financing for the Green Springs gold property after the project achieves certain performance completion test. The relationship with Elders provides the company a valuable resources of funds for future growth needs.