At the recent annual meeting, president George Coburn told shareholders the company will continue to increase reserves on its key properties, and also take advantage of the current soft gold market to seek and acquire new opportunities.
“We acquired our Hislop and Leckie properties at good prices during previous low markets,” he said. “We’ve increased the reserves on both those properties during the past two years, and hope we can do the same again with new acquisitions.”
Coburn said Stroud is currently evaluating at least three possible new acquisitions in the Timmins area, but added, “it’s still too early to provide specific details.”
Geological reserves on Stroud’s Hislop Twp. claims have been estimated at around 856,000 tons grading 0.186 oz gold per ton. That figure includes favorable results from two deep drill holes which intersected 0.476 oz gold over 5 ft, and 0.132 oz gold over 5 ft below the 1,000-ft horizon. Exploration has been hampered by deep overburden (40-100 ft) which covers most of the property.
Chevron Minerals has a 50% interest in the Hislop property and is operator of the project. “We would like to see an underground decision made this year at Hislop, but that will depend on what Chevron decides,” said Coburne.
On Stroud’s Leckie gold prospect, north of Temagami, the company hopes to build up reserves to at least the same level as those on the Hislop property. A drilling program is scheduled to begin this fall at Leckie, Coburn said.
The company is in the enviable position of enjoying cash flow, expected to total about $270,000 this year, from its interests in producing gas-condensate wells in central Alberta.
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