Muscocho aims to boost output

With the Magino gold mine ready to pour its first bar this month, and the Magnacon gold mine on stream for production during the first quarter of next year, Muscocho Explorations (TSE) is aiming to turn out about 80,000 oz in 1989.

Both of the above mining projects are located in the Wawa area of northern Ontario, and both involve partners: Muscocho and McNellen Resources (VSE) each have a 50% interest in the Magino joint venture, while Muscocho and Windarra Minerals (VSE) each have a 25% interest, and Flanagan McAdam Resources (TSE) a 50% interest, in the Magnacon project.

Muscocho’s Montauban mines in Quebec, which went into production in 1983, turned out 11,281 oz gold and 103,430 oz silver in 1987. Reserves at the property at the end of 1987 stood at almost 457,000 tons grading 0.16 oz gold and 3.45 oz silver.

For 1988, the company is forecasting gold output of about 30,000 oz.

Muscocho for 1987 recorded a net loss of $317,000 (2} per share) on revenues of $9.3 million, compared with a net loss of $152,000 (3} per share) on revenues of $8.1 million for the previous year.

Major news for Muscocho this year was its involvement with Echo Bay Mines (TSE), with the giant gold producer agreeing to purchase significant minority interests in Muscocho, McNellen and Flanagan McAdam. The $50-million deal consisted of $26.5 million in newly-issued common shares and $23.5 million in convertible debt securities.

The Echo Bay deal provides Muscocho with capital for development of the Magino, Magnacon and other projects and the support of a major North American producer.

Muscocho reports it is busy with exploration work in the Wawa (Mishibishu) area, at the Jerome project located 100 miles north of Sudbury, at the Gwillim Lake- MOP-2 and adjoining Gwillim projects in the Chibougamau area of Quebec, and in the Baie Verte area of Newfoundland.