McChip Resources close to earning property interest

Shareholders of McChip Resources (TSE) were told at the recent annual meeting the company is close to acquiring its 50% interest in 72 claims located east of Timmins, Ont., in Stock, Macklem and German twps. McChip has spent $560,000 of a required $700,000 which will earn it a half-interest in the property from Noranda Inc. (TSE). The claims lie along a volcanic-sedimentary series in close vicinity of the Porcupine-Destor fault.

During 1987 and the early part of this year, the company carried out 14,596 feet of drilling, extending the strike length to 2,700 ft. Anomalous gold values have been uncovered. Hole px-87-23 averaged 0.03 oz gold per ton over 214 ft, while hole px-88-26, drilled to 1,700 ft, assayed 0.24 oz over 7.2 ft, 0.21 oz over 5.9 ft, 0.36 oz over 7.2 ft, 2.15 oz over 1.6 ft, 0.21 oz over 8.5 ft and 4.96 oz over 1.6 ft.

At the 42-claim Garrison Twp. property located about 25 miles northeast of Kirkland Lake, Ont., McChip has spent $283,000 of a required $300,000 which will earn it a 50% interest, also from Noranda. Ten holes representing 8,536 ft were drilled in 1987 on the property, but according to President P. H. McCloskey, “nothing exciting yet” has been uncovered.

For 1987, McChip recorded net earnings of $111,127 (4 cents per share) on total revenue (petroleum and gas sales included) of $939,704, compared to a net loss of $157,139 (6 cents per share) on revenue of $1 million the previous year.

The company has about 3.2 million shares outstanding; major shareholder, with a 33.7% equity interest, is President McCloskey. At the annual meeting, shareholders approved a motion that provides for an unlimited number of common shares, a change from the authorized 5.5 million common shares previously allowed.

Elected to McChip’s board of directors were McCloskey, R. D. McCloskey, A. G. Mathew, J. S. Carman, A. D. Hellens and H. P. McCloskey.