Belmoral, Broulan to set up new company

Belmoral Mines and Broulan Resources have signed an agreement giving Belmoral the right to option Broulan’s property at Timmins, Ont., by spending $200,000 before the end of November to produce an exploration feasibility study.

Belmoral has until the end of the year to exercise the option which will give it the right to earn a 50% interest in the property by spending a further $2.3 million within a year.

The two companies plan to form a new company which will raise money for additional exploration expenses. Belmoral will manage the project.

The property, in Whitney Twp., is a consolidation of six mines — former producers that turned out a total of 4.8 million tons at a mined grade of about 0.24 oz gold per ton.

Immediately to the east of the property is the Hallnor mine owned by Pamour Inc. Also adjoining Broulan is a property being developed by Davidson Tisdale Mines which reports about 824,000 tons of drill-indicated ore grading 0.36 oz gold per ton.

Belmoral is considering three alternate approaches to explore the Broulan property from underground at about the 3,500-ft level.

One approach involves gaining acces via the Hallnor shaft. It has a completely equipped and maintained mining plant on standby which could provide immediate access to the boundary between Broulan and Hallnor at various levels from 2,500 to 5,000 ft below surface. The boundary is 7,000 ft from previously explored areas on the Broulan property.

Two other alternatives involve using the existing 2,500-ft-deep Reef shaft on the Broulan property. It would have to be dewatered and rehabilitated. Access to the 3,500-ft horizon would then be gained either by deepening the shaft or by drifting and ramping from its present deepest level.