EXPLORATION ’87 MINGOLD

A new company, Mingold Resources, has been formed to participate in the gold exploration, development and mining business in Canada. Initially the company will be private and owned equally by the Minorco group and the Inspiration Resources group. Minorco (via Minorco Canada, or Mincan, and more recently its subsidiary Ambay Services) and Inspiration (originally via Hudson Bay Mining & Smelting and more recently via Hudson Bay Gold) have been involved in joint exploration programs since October, 1983.

For the past three years the focus of these exploration activities has been on precious metals. The incorporation of Mingold Resources is the first step towards the company’s objective to move from the exploration phase to the production phase. It is hoped that, within 3-4 years, this should be a free-standing, self-financing, publicly- listed gold mining company. A $3- million budget for 1987 will be directed to precious metal exploration on claims held by the company in B.C. as well as in the Geraldton and Kirkland Lake areas of Ontario. In addition to these grassroots activities, the company carries on an active property- acquisition search and invests in other attractive exploration companies.

Mingold succeeds the Hudson Bay Gold/Mincan joint venture’s position on the proposed development of the Metalore gold project in the Beardmore area of northern Ontario. Under terms of the agreement with Metalore, Mingold will sink a shaft and carry out underground exploration on the property.

Mingold is also responsible, under a service contract, for administering Hudson Bay Gold and Farley Lake, both subsidiaries of Inspiration Resources. Farley Lake holds a 45% interest in a developing gold deposit at Farley Lake, Man., currently estimated to contain 750,000 tons of ore at 0.2 oz gold per ton. The 1987 expenditures on the Farley Lake property will be about $2 million.

The company’s head office is in Toronto, with regional offices maintained in Vancouver, Thunder Bay and Whitehorse. Other key employees are: P. L. Martin, vice-president exploration; Dr R. H. Garnett, vice-president technical; S. R. Poxon, vice-president finance; Dr R. Davis and J. G. Bragg, senior staff geologists (all located in Toronto); G. E. Bidwell, regional representative in Thunder Bay; E. W. Yarrow, regional representative in Vancouver; and R. Stroshein, regional representative in Whitehorse.