Real turnaround for Canreos under Belmoral Mines’ wing

There has been quite a turnaround in the affairs of Canreos Minerals. Under strong new management that has moved this company from the brink of insolvency into a healthy financial position, it is now resuming production from its Missanabie gold property and launching a rather substantial exploration program.

The change came with the advent of Belmoral Mines into the picture, Belmoral immediately subscribed for a $1,450,000 debenture which, if converted, will give that company a direct 30% interest.

Too, Belmoral successfully negotiated settlement of a long standing dispute between Canreos and Kidd Creek Mines in connection with a contract to ship 85,000 tons of fluxing ore to the Kidd smelter at Timmins. Due to some handling problems, Kidd only accepted 29,200 tons that graded 0.14 oz of gold for which Canreos has now received $1,250,000. Furthermore, that contract has now been revised which will see the shipment of the remaining 56,000 tons which should provide Canreos with a further cash flow of $1.5-$2 million by the end of September.

Canreos has also raised $500,000 through the sale of flow-through shares for the further exploration of its large property in that now- bustling area.

Addressing Canreos shareholders at their annual meeting this week, J. Malcolm Slack, Belmoral’s chief executive officer, described the Missanabie-Goudreau area as developing into probably Ontario’s next major gold camp. “From the substantial Renabie deposit, Canreos and Anglo Dominion on the east through to Canamax’s Kremzar deposit and Muschocho’s Magino deposit on the west (both will almost certainly support production decisions this year), the entire area is now tied up with extensive programs under way,” he said, adding that Canreos will now be able to participate in other area opportunities.

Pointing out that the major ore- making shear zone of the area has a strike length of five miles on Canreos ground on which there are some 25 gold showings virtually unexplored, Mr Slack said that the company’s objective remains the same — to outline Renabie-scale ore zones (4.5 million tons with a recovered grade of 0.22 oz and average mined widths of 40 ft.)

“With the completion of the Kidd Creek ore contract, Canreos will have no debt, cash in the bank and sizeable remaining ore reserves. It is currently evaluating other acquisitions or mergers in the Missanabie area, alternate custom milling options or the feasibility of milling its own ores,” Koos H. Schippers told the meeting. Mr Schippers, Belmoral’s vice-president, mining for Ontario and who has been supervising the recent work at Canreos, is taking over the Canreos presidency from Mr Slack.

Asked about the possibility of an amalgamation between Canreos and Braminco Mines which retains a 30% interest in the main claim group, Mr Schippers said that some discussions have been held.

The meeting was also told that obtaining a listing on the Toronto Stock Exchange is one of management’s high priorities.