Bow Valley budgets $3 million in 1988 to look for gold

While it has yet to come up with a viable gold deposit, Bow Valley Industries (TSE) spent $1.7 million last year on a number of exploration projects.

In a bid to add a gold production wing to its oil and gas operations, the Calgary company has set aside $3 million for exploration on its Nevada and Northwest Territories gold projects. They include:

* The 5,140-acre Contwoyto Lake gold property southeast of Echo Bay Mines’ (TSE) Lupin gold mine. Bow Valley is entitled to earn a 51% interest by spending $1 at Contwoyto by December.

Viscount Resources (VSE) retains a 20% carried interest in the property.

* An option on two properties held by Hemisphere Development Corp. (VSE) in the Courageous Lake area 85 miles northeast of Yellowknife.

The properties straddle the strike extension of the stratigraphy which hosts the Tundra gold deposit, discovered recently by Getty Resources (TSE) and Noranda Exploration (TSE).

As reported (N.M., July 6/87), Hemisphere announced an $800,000 surface exploration program designed to include 20,000 ft of diamond drilling.

* The right to earn a 60% interest in 13 Nevada properties acquired by staking and option agreements. Under an agreement to earn a 51% interest, Interaction Resources (VSE) began a 2,000-ft percussion drill program at the Mill property in Lander Cty.

The property is held by Bow Valley and Brican Resources (VSE).

Meanwhile, Bow Valley reported net income of $46.7 million (64 cents per share) in 1987 compared with a loss of $186.6 million or $4.59 per share in 1986. Revenues declined in 1987 to $257.2 million from $377.7 million last year.