Hemlo in charge at Central Crude

Exercising its ownership position in Central Crude (TSE), Hemlo Gold Mines (TSE) moved to gain control of the board of directors at the junior’s annual meeting in Toronto and operation of the company.

Hemlo, with a 43% interest in Central Crude, had two of its appointees — Ian Bayer and Joe Baylis — named to the Central Crude board. The third board member is Richard Nemis.

At the annual meeting, Central Crude management proposed a 3-man board (down from five members last year) comprising Nemis, James Thompson and Uldis Abolinis. Baylis, a Hemlo executive, nominated (from the floor) Bayer and himself on behalf of Hemlo Gold.

At a board meeting following the annual meeting, Baylis was appointed president of Central Crude, replacing Nemis.

Administration of Central Crude is to be handled out of the Toronto offices of Hemlo Gold, which is part of the Noranda group of companies. Among the major assets of Central Crude are a 40% interest in the Eagle River gold property in northeastern Ontario (Hemlo Gold owns the remaining 60%) and an option to earn up to a 60% interest in the high-tonnage, low-grade Moss Lake gold property in northwestern Ontario.

A feasibility study for Eagle Lake has been completed. Probable and possible reserves of 2.86 million tons grading 0.25 oz. gold per ton, cut and fully diluted, were announced for the property.

At last year’s annual meeting, Nemis told shareholders that Eagle River will enter production “with or without” the help of Hemlo Gold. He proposed that Central Crude bring the property into production in exchange for a share of Hemlo’s interest in the project.