Gold projects in Chile, U.S. add lustre to Westfield

The company is set to move into the ranks of significant gold and silver producers, President Peter McAleer told shareholders at the annual meeting of Westfield Minerals (TSE).

Helping to launch it on that road will be the start of production in July at the Choquelimpie gold- silver deposit in northern Chile, in which Westfield has a 35% interest.

The Chilean mine is scheduled to produce more than 350,000 oz gold and five million oz silver by heap leaching, over the next six years, McAleer said.

Partners in the venture are Shell (42%), and Citibank N.A. (23%).

As well, he said, Westfield has an 11% interest in the Little Bald Mountain gold mine in Nevada, where production this year will double to between 8,000-9,000 oz gold, and in Canada will receive a 7.5% gross royalty from the Scadding gold operation of Orofino Resources (TSE) near Sudbury, Ont., expected to produce up to 8,000 oz gold in 1988.

Westfield’s share of production from its interests in the Chilean, U.S. and Canadian operations will amount to over 25,000 oz gold equivalent beginning next year.

“Chile is the main event for Westfield,” McAleer said, adding “I’m very enthusiastic and comfortable with everything that’s happening there.”

On the exploration front, Westfield has its most significant Canadian operation under way at an important discovery of copper-zinc massive sulphide mineralization at its Big Island Lake property near Flin Flon, Man.

A summer drill program at Big Island, due to start about the end of May, will be aimed at expanding the known mineralization and locating other mineralized areas on the property. Westfield is expected to have earned a 70% interest in the property before the end of this year.

Also in Canada, the Ontario Gold Venture, in which Westfield holds a 54% interest, will start a 7,000-ft drill program this month on a precious and base metals prospect in the Pickle Lake area of northwestern Ontario. Partners are Northern Dynasty Explorations (TSE), and Newfields Minerals (VSE).

Shareholders at the meeting approved $15-million loan agreements with associates Northgate Exploration (TSE), and Whim Creek Consolidated N.L., which will provide financing for Westfield’s participation in the Chilean project, and for general corporate activities.

Whim Creek will advance $5 million at an interest rate of 1% below the Australian prime rate, plus a 3-year option on 1.5 million Westfield shares at an exercise price of $2.50 a share, and Northgate will advance up to $10 million at 1% below the Canadian prime rate plus a 3-year option on three million Westfield shares also at an exercise price of $2.50 a share.