Borealis ends fiscal year with $16 million in bank

Still without an ounce of mineral production to its credit, Arctic explorer Borealis Explorations completed its financial year with over $16 million in cash and securities.

Deferred exploratory and development expenses on a number of exploration projects in the Northwest Territories increased to $16.9 million for the year ended March 31, from just over $9 million at the same time last year.

The company’s year-end deficit also increased to $1.59 million from $860,061 on March 31 last year. While Borealis plans to raise $5.5 million in flow-through share financing this year, it will need other sources of financing to fund exploration on the company’s Fat Lake project, said President Rodney Cox.

Located about 90 miles southwest of Rankin Inlet in the Northwest Territories’ Keewatin district, Fat Lake is the subject of an underground exploration program designed to prove up sufficient reserves in four vein systems for a 1989 production decision.

Proven reserves to a depth of 67 m on Vein Nos 99 to 103 stand at 5,350 tons grading 0.325 oz gold per ton. Drill indicated reserves to a depth of 200 m stand at 18,400 tons of grade 0.307 oz, the company says.

As part of that production effort, Borealis has sunk a ramp to the 40- m level and install a 76-m drift along vein No 101 where drilling intersected 160 cm of grade 10.541 oz at a depth of 7.9 m and 90 cm of grade 0.113 oz at a depth of 24.1 m.

“This work confirmed that the vein is essentially continuous, that gold mineralization is not confined to isolated high grade pods, and that grades, taken to mineable widths, appear commercial,” said Cox.

This year, he said. the ramp will act as a platform for more exploration within the already drill designated ore zone and for other veins in the system.

While Borealis commissioned a 100-ton-per-day test mill in late 1987, Cox said the company’s priority will continue to focus on exploration rather than mining. However, some 2,000 tons of material extracted from Vein No 101 is exp ected to be available for testing this year.

In other news, Noble Peak Exploration (ASE) has just completed a spring drilling program at the Happy Lake project in Keewatin where a production decision is expected to be announced by spring, 1989.

Under a farm-out agreement with Borealis, Noble Peak can earn a 50% interest at Happy Lake by bearing 100% of exploration and development costs prior to payout. While results have yet to be announced, the program was designed to develop information to select one or more prospects for detailed tonnage definition.

As reported (N.M., Jan 18/88), surface gold showings were reported in May, 1986, with samples assaying as high as 6.71 oz.

The Borealis issue was trading recently on the Alberta Stock Exchange at $16.