Silver Hart property gets not subject to suitable financing

A feasibility report has been approved by the board of directors of Silver Hart Mines for a silver property in the Yukon and the development go-ahead has been given subject to a suitable financing arrangement.

The feasibility report details a program of stripping, ore stockpiling and milling, and is based on the installation of a permanent 200-ton-per-day mill, upgrading of the 25-mile-long road to the Alaska Highway and site development.

Construction of permanent facilities is estimated to cost $5.4 million, with current reserves of 47,000 tons mined and milled by the end of 1988 at an additional cost of $4.8 million. (Both sums include a 20% contingency allowance.)

At a price of $5.55(US) per oz, the company estimates net smelter returns from current reserves during 1988 would pay off all capital and operating costs and generate a pretax net margin of $4.3 million. (Silver has of late been running in the $7.50-$8 range.)

While investigating possible financing schemes, the company is continuing its exploration efforts at the Yukon property, located near Rancheria, to expand reserves.

To finance its 1987 exploration needs, Silver Hart has offered a private placement in $30,000 units to a limited number of shareholders and friends, with each unit earning 4,000 flow-through shares. Also, the company has an agreement with a fund to supply $1 million of flow- through funding this year. In addition to covering exploration at the Yukon property, these funds will be used to maintain the company’s pro-rata share of Snow Lake Mines’ flow-through issues (the company is a Silver Hart subsidiary) and to support exploration at Silver Hart’s Bathurst Inlet properties.

At the Snow Lake gold property in Manitoba, the company reports drilling has revealed the Birch zone has a strike length of at least 6,000 ft and contains two or more shoots. Also, on the No 3 zone, mineralization exists to at least 1,100 ft and supports the concept of a major deposit below the 400-ft level which is larger than the known reserves above 400 ft, reports the company.

During the first quarter of this year, Silver Hart recorded a net loss of $65,415.