Exploration ’88 HUDBAY

Hudson Bay Exploration and Development, a wholly-owned subsidiary of Hudson Bay Mining & Smelting, will again be concentrating its exploration efforts in northern Manitoba and Saskatchewan in 1988. The operations will be directed from the company’s office in Flin Flon, Man. Total exploration expenditures for 1988 are projected at $5.7 million, of which about $5 million will be for Hudson Bay’s account. The balance will be contributed by joint-venture partners. This is somewhat less than the total estimated expenditure for 1987 of about $7.1 million. The main thrust of the exploration program will be for base metal and polymetallic deposits in the Flin Flon/Snow Lake Greenstone Belt, although up to 10% of the budget will be allocated to purely precious metal projects.

With the development of the Namew Lake nickel mine and construction of a concentrator on-site, a strong effort in 1988 will be directed towards finding further nickel deposits in the surrounding area to augment the known reserves of 2.8 million tons. Up to 20% of the budget will be allocated to this project.

The overall program will be a mix of grassroots and more focused exploration on known mineralized zones. About 75% of the budget will be devoted to diamond drilling. In addition to carrying out exploration for its own account, Hudson Bay will be acting as agent and operator in the Flin Flon/Snow Lake area for its sister company, Mingold Resources. Incorporated in early in 1985, Mingold is equally owned by Hudson Bay Gold, a subsidiary of Inspiration Resources Corp., and by Ambay Service, a subsidiary of Minorco Canada.This program will be entirely directed towards precious metal projects.