Reserves at the Vancouver Island, property are reported to be 247,078 tons of grade 0.41 oz gold per ton.
But McAdam says it will do a test run on lower grade material before deciding within the next six months if known reserves can be mined economically.
Funding for the test mill was provided by affiliate company Muscocho Explorations (TSE) via a $2-million convertible debenture. According to President John McAdam, the company has also entered into an agency agreement whereby Midland Doherty Ltd. will attempt to raise up to $1 million in exploration funds through a private offering in Quebec.
“McAdam must complete further financing arrangements to complete the test milling phase,” said McAdam.
In other news, the inhospitable market climate for junior exploration companies has prevented McAdam from pushing ahead with other key projects. Shares of the company were trading recently at only 47 cents on the Toronto Stock Exchange and McAdam’s second quarter cash position declined to $206,929 from $689,216 in the first three months of 1989.
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