NEWS ROUNDUP (November 04, 1991)

Onitap Resources (TSE) says Exploration Orex (ME) defaulted on its July 1, $25,000 instalment payment for the purchase of the Goldboro deposit in Nova Scotia and has failed to make any subsequent monthly payments.

But contacted at his office in Rouyn-Noranda, Orex President Michel Roy says the two companies have yet to sign a purchase agreement. He said he will hold off any payments until the agreement is finalized sometime in the next few weeks.

Under a settlement reached in December, 1990, Orex must pay Onitap a total of $8.75 million for the property over a maximum of nine years. Minnova (TSE) has an option to earn a 60% interest in Goldboro by spending $5 million on exploration by April 15, 1994, including instalment payments to Onitap.

More assay results were released by Granges (TSE) from a drill program on the Unuk joint venture in northwestern British Columbia.

Granges owns 50% of the gold project, with Springer Resources (VSE) holding a 37.5% interest and Cove Resources (VSE) a 12.5% interest.

The latest results included four holes drilled on the 900 zone to test the stratigraphy hosting a previously reported intercept of 1.21 oz. gold over 13.1 ft. Holes 16 and 19 returned no significant results.

Hole 17 returned 2.2 ft. of 0.039 oz. gold and 0.46 oz. silver per ton and 4.9 ft. of 0.031 oz. gold and 0.44 oz. silver. Hole 18 returned 3.2 ft. of 0.076 oz. gold and 1.54 oz. silver and 9.8 ft. of 0.041 oz. gold and 0.22 oz. silver.

Granges has completed the drilling, with a total of 19,058 ft. to the end of hole 30. More assays are expected shortly.

Gold output at the A.W. White mine at Red Lake, Ont., of Dickenson Mines (TSE) during the first nine months of 1991 totalled 56,571 oz., down from 59,884 oz. for the same period last year, the company reports.

The cash production cost during the nine months dropped to $393 per oz. from $414 last year, said Dickenson, which recorded increased net earnings during the 9-month period compared with 1990.

Dickenson’s 36.2% owned affiliate Wharf Resources (TSE) reports gold output of 68,689 oz. during the 9-month period from its South Dakota heap-leach operation. That production total was a 17% improvement compared with the same period last year.

A development program started in 1990 at the Francoeur gold mine project near Rouyn-Noranda, Que., involved the extraction of 115,000 tons of development ore yielding 21,200 oz. gold, Richmont Mines (ME) reports.

The $9.5-million program was completed in September by Richmont and its joint project partner, LAC Minerals (TSE).

Richmont declared the commencement of commercial production as of Oct. 1. Richmont said the J.G.R. shaft, sunk to 2,700 ft. in 1989, is now able to produce 400 tons of ore per day on a regular basis.

Output of 5,200 oz. from 26,000 tons is estimated for the last quarter of 1991. The companies hope to extract about 120,000 oz. of ore grading 0.2 oz. gold per ton in 1992.

Richmont President Jean-Guy Rivard said a development program is planned to increase production to 750 tons per day to support the construction of an on-site mill.

The on-off-again sale of the Bell Creek gold mine by Canamax Resources (TSE) to Falconbridge Gold (TSE) is going ahead.

Canamax said it has reached a definite agreement to sell the mine and mill and contiguous properties near Timmins, Ont., conditional upon Canamax completing its previously announced shutdown (anticipated about mid-December) of the mine and mill.

No dollar amount was announced, but when Canamax first announced it had signed a letter of intent with Falconbridge in August, a $5-million price tag for the mine and mill was mentioned. Falconbridge subsequently said it had pulled out of the deal after completing its due diligence review.

A grassroots consultation program for northern Ontario, to be known as SCAN North and aimed in part at helping the mining industry, was recently announced in Sudbury by the Ontario Minister of Northern Development and Mines, Shelley Martel.

SCAN (Strategic Consultation and Action Now) North consists of specific projects initiated by the ministry on the advice of northerners. These projects will take various forms, including task teams, project advisory committees and 1-day round-table sessions. The focus will be on developing long- and short-term strategies to promote regional diversification and economic renewal.

One of the five specific SCAN North projects to get under way immediately concerns the mining industry. A task team composed of representatives from the Ontario Mining Association, the Prospectors and Developers Association of Canada, the Ontario mining equipment and services export sector, unions, the ministry of northern development and mines and the ministry of industry, trade and technology.

The other four projects involve the forestry industry, waste management, small business and native economic

development.