Belmoral to take short cut in accessing Broulan zones

Broulan Resources (TSE) and partners Belmoral Mines (TSE) and Wrightbar Mines (ME) say they may elect to take a shorter route toward exploration at the old Broulan mine property near Timmins, Ont.

In a bid to access to a number of zones extending from the adjacent Hawlnor gold mine, the partners had planned to deepen the Broulan shaft from 2,500 ft down to the 3,500-ft level.

But after considerable delays due to poor ground conditions, consideration is now being given to altering the program in order to gain earlier access to the areas targeted for underground diamond drilling,” Broulan said.

Instead, operator Belmoral Mines may attempt to rehabilitate the 2,500-ft bottom level and drill the targeted areas from there, said Jim Johnstone, Belmoral’s vice- president of Ontario mines. While mine workings extend all the way down to 2,500 ft, most of the work is focused on the 500 and 2,500 levels.

Johnstone said exploration of the “C” zone via an extension of the 500-ft level is continuing and some interesting intersections have been encountered. However, results aren’t available yet.

Broulan holds a 35% interest in the former mine, while Belmoral retains 50% and Wrightbar 15%. About $12 million has been spent on rehabilitation so far.

In the first six months of 1988 Broulan’s net earnings increased to $871,571 or 12.6 cents per share from $366,425 or 5.3 cents per share at the same time last year.

The company also reported a $383,524 gain on the sale of investments compared to $410,211 in the first six months of 1987. Working capital stood at $13.7 million or $1.98 per share, down from $14.1 million or $2.04 per share last year.