Golden Range Hudvam plan hurt by low share price

With its shares trading at 8 cents recently on the Toronto Stock Exchange, Golden Range Resources (TSE) says it has been unable to raise sufficient funds to finance a 5,000-ft decline at the Hudvam property near Flin Flon, Man.

After spending $2 million, only 700 ft of decline has been completed so far.

That’s bad news for Mingold Resources, a Toronto based subsidiary in the mining arm of partners Inspiration Resources (TSE) and Minorco. Mingold recently bought control of Golden Range in a reverse acquisition agreement, so that the former company could raise flow-through money for exploration at Hudvam.

Mingold and Golden Range initially planned to spend $3 million and later an additional $2 million on construction of the exploration decline and 8,000 ft of diamond drilling. About $1 million was earmarked for Mingold’s other properties.

At Hudvan, the companies have outlined a drill proven, probable and possible reserve inventory of 815,000 tons of grade 0.116 oz gold, 0.40 oz silver, 1.36% copper and 1.9% zinc. But Golden Range is currently looking for a joint venture partner.

In other news Golden Range has arranged a $300,000 flow-through financing agreement with Nim Management Ltd. to finance exploration on the company’s Lardeau property in British Columbia.

Comprising approximately 7,200 acres, the property is located 40 air miles from Revelstoke and a road passes within four miles.

Golden Range says it will spend $200,000 to explore the property where two quartz vein systems are already known to exist. They include a 6.23-ft wide quartz vein called the Black Warrior zone which has been outlined over a defined strike length of 328 ft.

A second 6.56-ft quartz zone called the Silver Leaf has also been encountered with values ranging as high as 20.32% zinc, 1.15 oz silver and 0.092 oz gold per ton.

Back in 1905, 30 tons of grade 100 oz silver was shipped from the property. Last year, a grab sample assayed at 5.16% copper, 9.39% zinc, 1.93 oz silver per ton and 0.439 oz gold.

The balance of the Nim funds has been earmarked for Golden Range’s Timmins, Ont., area properties.