Montreal Exchange: New life for Eastmain

New life has been breathed into the Eastmain gold project in northwestern Quebec near James Bay. Property owner MSV Resources has struck a joint venture deal, subject to regulatory approval, with Meston Lake Resources which could see the project in production early in 1992. Rather than build a milling facility on the site, the companies plan to truck the ore to Chibougamau, Que., 185 miles to the southwest, for processing.

A winter road to the Eastmain site will be required; the Quebec government has already announced a grant to help in the road construction. MSV closed at 35 cents, up 10 cents for the week ended Feb. 12. Meston is a wholly owned subsidiary of Campbell Resources, which gained 1 cent to 37 cents.

The buoyant investment mood continued during the week, with daily trading volumes ranging between 5.5 million and 10.2 million shares. The market portfolio gained almost 34 points and the mining and minerals index zoomed ahead by more than 64 points.

Exploration Orex and Minnova, having signed a formal agreement whereby the latter may acquire a 60% interest in the Goldboro gold project in Nova Scotia, have begun a drilling program on the property with the aim of outlining zones amenable to open pit mining. Orex slipped by 2 cents to 45 cents, while Minnova was higher by 75 cents at $15.75.

In British Columbia, near Cranbrook, Greenstone Resources and its project partner, VSE-listed Dragoon Resources, reported a 36-ft. intersection grading 0.37 oz. gold per ton at the David/Lew property. Greenstone closed up 5 cents to $2.10.

Aurizon Mines and Cambior announced the discovery of gold-bearing sulphide mineralization from the first hole of an underground drilling program on the former’s Sleeping Giant gold mine property north of Amos, Que. Cambior, operator of the exploration work, has three machines at work. Aurizon moved up 7 cents to 17 cents. Cambior gained 88 cents to $9.88.

Benefiting from the announcement of a gold discovery at its Benoist Twp. property southeast of Miquelon, Que., was Freewest Resources, which gained 45 cents to $3.45. President Mackenzie Watson said drilling will continue there to test the mineralized zone along strike and at depth.