Noramco absorbs affiliates

An amalgamation proposal has been made which will see Noramco Mining Corp. acquire all the assets of affiliate companies Emerald Lake Resources and Highland-Crow Resources. The amalgamation, which has been determined in principle, requires the approval of shareholders of all three companies.

Noramco, which went public last spring with a $50-million unit offering, is a mining finance house holding varying interests in a large portfolio of junior exploration companies. The amalgamation will give the company direct exposure to gold production from Emerald Lake, which operates the 400-ton-per-day Golden Rose mine near North Bay, Ont. Also, additional gold production is expected in the future from Highland Crow’s Central Patricia project near Pickle Lake, Ont. The share exchange is based on one common share of Noramco for each share held in either of the two companies.

The new company, which will continue under the name of Noramco Mining, will combine not only a huge portfolio of exploration properties but mining and production expertise as well. In 1986, Noramco was one of the largest mineral exploration companies in Canada, in terms of acreage held and dollars spent. In 1987, the organization plans to spend $60 million on 60 projects across the country. The funds are coming from the Golden Day Limited Partnership, which raised $60 million of flow-through funds.

One of the company’s most advanced exploration projects is the Estrades polymetallic deposit in Quebec’s Casa Berardi area. Affiliate companies Golden Group Explorations and Golden Hope Resources are partners in the program with Teck Corp.

Drilling has outlined a mineable geological reserve of one million tons grading 0.13 oz gold per ton, 5% zinc, 0.62% copper and 4.5 oz of silver. Upon completion of an 11,000-m drill program, the partners expect to increase reserves to two million tons by year-end.

Some of the better holes in the program include H-183 which cut a 24.2-ft section grading 0.375 oz gold, 4.32 oz silver, 0.65% copper and 10.79% zinc. Another 15-ft section in the same hole assayed 0.414 oz gold, 6.98 oz silver, 0.45% copper and 21.9% zinc.