News in Brief (March 21, 1988)

Mill City Gold has started a surface exploration program on a 68-claim gold property adjacent to its McMillan gold mine prospect 57 miles west of Sudbury, Ont. The company can earn a 58% interest in this new property, subject to a 2% net smelter return, through an agreement with Rainbow Exploration Corp. of Calgary. Recent work on the property has included rehabilitation of the shaft, a mine dewatering program and surface exploration.

Continental Precious Minerals has entered into arrangements to acquire under option 274 claims located in Abbotsford Twp., Ont. In order to exercise the option, Continental must perform an airborne survey on the property, incur $1.6 million in exploration expenditures over four years and make cash payment or issue shares for the cash equivalent in the amount of $434,250 over four years. The vendors of the property will retain a 10% net profit interest on the claims. The agreement is subject to regulatory approval.

Mahogany Minerals Resources has changed its transfer agent to First City Trust Co.

Runaway Resources has changed its transfer agent to Pacific Corporate Services Ltd.

Norbeau Mines of Toronto has announced that the first hole of a deep drilling program on the Lemoine joint venture has been stopped at 1,707 m due to the mechanical limitations of the drilling rig. The deep conductive target was not intersected although one narrow 5-cm zone of massive sulphides grading 0.072 oz gold per ton, 2.12 oz silver, 2.4% copper and 6.7% zinc was intersected at 1,606.25 m.

The board of directors of MFC Mining Finance Corp. has agreed to lend $5 million(US) to Brohm Resources to finance the continuing development of a gold deposit and the construction of an oxide ore processing facility at the Gilt Edge project near Deadwood, S.D. The loan will bear interest at commercial rate and will be secured by a first charge on the assets and cash flow related to the oxide ore reserves and processing plant. The loan is subject to execution of definitive documentation by the two companies and receipt of any regulatory approvals.

Gunnar Gold reports that a number of targets for further exploration have been outlined on the Aupan property in the Red Lake gold camp of northwestern Ontario. Gunnar recently acquired the option to earn a 75% interest in the 12-claim gold property adjacent to its Headway Red Lake claim group from Aupan Red Lake Resources.

Zenco Resources has changed its name to Solidor Resources Inc. (slz:vse) on a 1-new-for-5-old share basis. The new transfer agent is Guaranty Trust Co.