Energex winds down Toodoggone work

Increased income from operations and a positive cash fl ow boosted Energex Minerals’ cash position during the quarter ended Aug 31 to $1.64 million. President Arne O. Birkeland says the company’s investment in Giddings Ltd., a gas gathering, processing and transmission system, continued to be the major source of cash flow with monthly distributions ranging from $30,000 to $50,000(US).

Exploration expenditures during the quarter were $1.35 million, the bulk of which was financed by flow- through shares. Mr Birkeland says exploration work on the company’s Toodoggone area holdings north of Smithers, B.C., has wound down. Lack of water is cited as the prime reason for the termination of activities which included a small pilot plant operation that could be expanded next year. A good water source has been found for the 1987 program which could extend the operating season.

The plant established the metallurgical parameters for several different deposits and the data will be useful when the company discusses production financing with lending institutions. He says the company’s technical staff is doing reserve calculations and these should be ready in the next few months. In all likelihood, there will be an increase in reserves, he confirms.

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