Novamin’s fiscal year-end to correspond to Breakwater

Following the recent takeover of Novamin Inc. by Vancouver-based Breakwater Resources, the former company has set a new date to end its taxation year.

Before the takeover, Novamin’s fiscal year-end was dated June 24, but to correspond with the Breakwater tax year, Novamin will end its fiscal year on Dec 31, President Brian Pewsey says.

As a result, instead of issuing its scheduled quarterly report, Novamin has prepared financial statements for the periods from May 1 to May 24 and from June 25 to Sept 30.

By Sept 30, Novamin had cancelled a long-term debt figure which stood at $5 million on the corresponding date in 1986. Novamin also reported a cash position of $1,981,446 on Sept 30 which was up considerably from $388,394 at the same time last year.

From May 1 to Sept 30, Novamin says it spent $4,595,000 (including $4,362,000 to fulfill the company’s obligation to 1987 receiptholders) on a number of properties.

They include Novamin’s Rundle Gold property 65 miles southwest of Timmins, Ont., where a $7.5 million underground exploration program was started in July.

In recent work, Novamin says a decline has advanced 500 m and has encountered the B North ore zone with three legs of the ramp. Muck samples from the first leg averaged 0.31 oz gold per ton over a 115-ft length.

According to Novamin, face samples over this length averaged 0.54 oz while muck samples from the second leg averaged 0.23 oz over 112 ft. Face samples averaged 0.28 oz over a similar length, the company says.

At the company’s Tonawanda joint venture property eight miles east of Tonawanda, Que., Novamin says visible gold was encountered in three of seven holes drilled to test induced polarization anomalies.

The anomalies are about one km southeast of the Highway zone where an underground exploration program was scheduled to begin this month.

In other news, drilling continues at Novamin’s Dufferin mine property in Nova Scotia where seven of 10 drill holes intersected visible gold. Novamin says the first hole, which encountered two zones, assayed at 0.20 oz over 5 ft and 0.343 oz over 7.2 ft.

Drilling, raising and drifting is also continuing on silver veins at the company’s Conisil property at Cobalt, Ont., where silver values average 21 oz over a 4-ft width along a raise length of 52.5 ft.

Novamin shares were trading recently on the Toronto Stock Exchange at 80 cents in a 52-week range of $2.30 and 60 cents .