New Pascalis Mines has decided it will not participate in a $10-million underground program of Cambior Inc., now under way on the No 1 showing on the 38 New Pascalis claims located some 25 km east of Val d’Or, Que.
The Cambior program involves dewatering and extension of the existing underground workings, additional drilling to upgrade reserves to the proven category, and exploration for lateral ore extensions. A shaft is to be sunk to 375 m.
Probable reserves to date (N.M., June 15/87), calculated to a depth of 140 m, are about 720,000 tonnes at a grade of 0.11 oz gold per tonne.
J. C. Cowan, president of New Pascalis, tells The Northern Miner the decision not to participate in the Cambior program was “taken in the best interests of New Pascalis shareholders.” He commented that what Cambior is doing is “a pretty expensive exploration program.”
Mr Cowan said as a result of the decision, New Pascalis’ interest in the claims will be diluted from the current level of 37.6%. If, he adds, the New Pascalis interest is reduced to 20%, this interest will automatically be converted to a 20% net proceeds of production royalty.
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