Getty, Davidson launch program

A $2.6-million exploration program covering the balance of the 1986 flow-through year has commenced at the Tisdale gold project of Getty Resources and Davidson Tisdale Mines near Timmins, Ont. Getty has completed its $6-million commitment to earn a 50% interest in the project so costs will now be shared equally by the joint venture.

An underground bulk sampling program is under way to confirm drill-indicated reserves and a $1.7- million contract was recently awarded for a 2,500-ft decline ramp which will be driven to the third level.

According to Richard C. Atkinson, Getty’s president, a total of 660 ft of crosscuts and 165 ft of raises are planned to confirm lateral and vertical continuity of the mineralized structure above the 300-ft level. Preparation of the portal site is complete and work on the actual decline is well advanced.

He confirms that the operator is “satisfied with the results of the bulk sampling program to date,” adding that drill-indicated reserves on the lower vein zone of the fourth and fifth levels have been confirmed at approximately 455 tons per vertical foot. More than 269 ft of vein has been exposed and sampled on the fifth level and 282 ft on the fourth. Altogether, some 469 ft of raises have been driven on the vein structure between the fifth and third levels. “Completion of the current sampling program on the upper vein zone will allow a mine proven reserve estimate to be prepared,” he claims. Major drill program

A major surface drill program is under way which is designed to examine the downdip extension of the main vein zone between the 650-ft and 1,500-ft horizons and also to confirm and upgrade the S zone reserves by in-fill drilling.

Vein material accumulated during this and last year’s bulk sampling program is being processed at the Timmins GOMILL which is being operated by Pamour Inc. Getty Resources will supervise the program which is expected to yield metallurgical information for production planning.

The joint venture is adding to its land position in the region having acquired the Allerston and Gonzales properties in September representing a total of 380 acres. In addition, Getty is negotiating with Esso Minerals Canada and Davidson Tisdale regarding farm-in agreements on their adjacent lands.

Road access to the property has been upgraded so heavy equipment can now move in on a year-round basis. Hydro-electric power will be brought in which should reduce fuel costs.

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** Added market appeal aim of Glamis split ** Shareholders of California gold producer Glamis Gold approved a subdivision of the company’s common shares early this month. As a result, shareholders will receive three new shares for every two shares held.

“The additional capitalization will significantly improve the liquidity of our market,” says Chester Miller, president of Glamis.

The idea is to make the company’s shares more appealing to the large institutional investors, who in the past have viewed the company’s shares as being too few to be worth their bother. For such a small but efficient gold producer, Glamis has just 5.1 million shares outstanding trading at about $11. (Holders of the company’s warrants will now be able to buy 1 1/2 shares at $7.50).

The company boasts one of the lowest-cost gold mines in North America — the Picacho mine — with operating costs below $130(US) for every ounce of the yellow metal it produces. And last year that amounted to about 26,000 oz, netting the company $2.1 million, or 47 cents a share.

But even with the stock split, which should bring the number outstanding to 7.7 million, the company’s earnings per share should not go down dramatically. The reason is another mine that’s due to go into production at a rate of 10,000 oz per year initially, building up to 30,000 oz per year within 2-3 years.

Located in California as well, this mine will be leaching 500,000 tons of ore from the La Monte zone this year, one of three areas of leachable mineralization on the property. Waste stripping from this pit is in progress and conceptual plans have been developed for the main Yellow Aster pit area.

Another property, the Buffalo Gulch-Friday Group, located near Elk City, Idaho, has indicated reserves of six million tons grading 0.030 oz gold per ton and an additional 3 million tons at 0.040 oz gold per ton. Glamis can earn a 51% interest by funding exploration by way of private placements to Amir Mines and Normine Resources, both of Vancouver. A permit to carry out a bulk leach test has been filed, according to Vice- president J. R. Billingsley.

In the first three months of fiscal 1987, ended Sept 30, Glamis reported net earnings of 297,359, or 6 cents a share, down from $677,502, or 17 cents a share in the same year-ago period. The gold production shortfall is expected to get back to normal as a new 1.7-million leach pad is completed at the Picacho mine and leaching gets under way.