Dundee-Palliser pushes for Vezza production

In an effort to bring the Vezza Twp. properties to a production mode, Dundee-Palliser Resources and partner North American Rare Metals have spent approximately $2.8 million on exploration since September 1986.

Dundee and North American Rare each have a 50% interest in the 200-claim Vezza properties located 15 miles south of Matagami in northwestern Quebec. In the 2- month period in 1989 from Sept 30, to Nov 30, Kennco Explorations has an option to earn a 20% to 30% interest in Vezza by funding additional exploration there.

By Nov 26, some 77,200 ft of diamond drilling had been completed on the Vezza properties with reserves of 1.6 million tons grading 0.17 oz gold per ton outlined. According to Dundee-Palliser, an additional 46,000 ft of drilling will be completed by March.

A gold-bearing alteration zone has been outlined over a strike length of 6,900 ft and the deposit is contained in a strike length of 2,300 ft to a depth of 1,300 ft.

In a bid to examine the deposit’s potential, Dundee-Palliser says an underground exploration program is expected to begin this spring. It will be partially funded with the proceeds of a flow-through share issue subscribed by mvp Exploration (1988) and Co.

After spending $1,340,000, Camindex Mines holds a 71.6% interest in the Dundee-Palliser properties and in March that will be converted to 1,522,727 Dundee shares. Camindex already owns 2,050,276 Dundee shares representing a 41.8% interest.

Meanwhile, Dundee-Palliser recently reported a net loss of $15,511 or 3 cents per share for the nine months ended Sept 30, which compares to a net income of $311,320 or 9.5 cents per share for the same period last year.

According to Dundee the corresponding 1986 results included an extraordinary gain of $343,320.

The company’s cash position for the nine months ended Sept 30 stood at $5,499 compared with $142,699 on Sept 30, 1986. At press time, Dundee-Palliser shares were trading on the Toronto Stock Exchange at 60 cents in a 52-week range of $1.46 and 45 cents .