Quebec prospectors caught up in provincial election action

Raymond Savoie, the minister responsible for mines and whose own riding takes in the city of Val d’Or about 60 miles to the east of here, spoke for the Libera ls. A familiar face at QPA conventions, Savoie is said to be facing a stiff elec toral challenge in his riding from the Parti Quebecois candidate, Andre Pelletie r, the mayor of Val d’Or.

The PQ countered the next day with party leader Jacques Parizeau, who was the province’s minister of finance in 1982 when flow-through funding for grassroots mining exploration first came on the scene.

Flow-through financing, which spread across the country under a system regulated by the federal government, is a scheme which allows investors in junior explo ration companies to claim certain tax benefits. The scheme, involving the sale o f flow-through shares, peaked in 1987-88.

Changes to the system by the federal government at the beginning of 1989 have acted to slow considerably the infusion of flow- through funds into grassroots e xploration in Quebec and across the country.

Both of the political parties are promising modifications to the tax- shelter scheme for the benefit of Quebec investors. The Liberals want restrictions lifte d on the tax benefits offered for cumulative net investment losses. Parizeau is calling for the restoration of the original tax-shelter plan and its improvement.

Other ideas being touted by both parties include having SOQUEM, the province’s Crown mining exploration company, play an expanded role in mining exploration a ctivity. Elsewhere at the convention, delegates were given a

first-hand look at a numbe r of developing mining projects, including the exciting Louvicourt Twp. copper-z inc discovery of Aur Resources (TSE) and Societe Miniere Louvem (TSE) near Val d ‘Or.

Aur’s regional exploration manager in the Abitibi area, Don Bubar, in making the presentation, received a laugh when he suggested the Val d’Or area, long rega rded as a gold camp, might be about to establish a reputation as a base metal ca mp, similar to that of rival community Rouyn-Noranda, because of the Louvicourt Twp. find.

The on-going exploration project, with current geological reserves of 18 million tons grading 2.8% copper and 2.8% zinc, and with traces of silv er and gold, h elped spur investment activity on the stock market when news of the discovery sp read.

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