New Monique, Louvem results double tonnage of gold zone

Results from seven holes have been reported; the current program aimed in part at verifying the extension to the west of the G zone. Among the assays: WidthGrade Hole(ft)(oz/t) 23-125.20.21 23-315.70.35 20-239.30.18 20-4 7.90.19

Reserves of the G zone now stand at 390,000 tons grading 0.18 oz. Total property reserves (possible and probable) stand at about one million tons averaging 0.18 oz.

Meanwhile, Louvem and Monique (which is a subsidiary of Louvem) have signed letters of intent whereby the latter may increase its participation in the Monique and Castagnier properties by 10% and 45%, respectively.

Monique may boost its total participation in the Monique project to 40% by spending $1 million on the project by Feb 28, 1991. (Louvem’s interest would be 41% and that of third partner SOQUEM, 19%.)

The second letter of intent will enable Monique to increase its total participation in the Castagnier gold- copper-zinc property northeast of Amos, Que., to 50% by spending $450,000 on exploration work, also by Feb 28, 1990.

In addition, an agreement between Monique and Louvem calls for Louvem to commit $500,000 in exploration expenditures by the end of 1989 for properties in which Monique has an interest, the work to be carried out by Monique. In consideration of this financing, Monique will issue common shares to Louvem at $0.81 per share.

The letters of intent and the financing agreement are subject to the approval of the regulatory authorities and of the board of directors of both companies.

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