Davidson boosts land holdings in Timmins area

President K. R. Kent told shareholders at the recent annual meeting the company had staked 11 claims of the Beaumont property during a staking rush. Ownership of two of the claims was in dispute at the time of the meeting.

Davidson is involved in the joint- venture Tisdale gold project in the Timmins area with Total Energold (TSE) and Midas Minerals (TSE).

Custom milling of 44,000 tons material from the Tisdale project in 1988 yielded Davidson $1.7 million in revenue which was credited against deferred exploration expenditures for the project.

During the last quarter of 1988, the company took a $1.4-million write-down on the net deferred exploration expenditure at Timmins, in part to reflect reduced mineable reserves to 500 ft. A program to explore below 500 ft is under way.

Midas became a partner in the project last year and may earn up to a 60% interest through the funding of exploration work. Davidson and Total would each end up with a 20% interest.

During the first quarter of this year, drilling of five holes and the extension of a sixth hole from a previous program, to a maximum depth of 1,400 ft, was undertaken at Tisdale. The company reports one of the deeper holes cut 1.25 oz gold per ton over about 1.6 ft, while a second hole returned 0.04 oz over five ft and 0.11 oz over five ft.

Through a 48.6% interest in Vital Pacific Resources (VSE), Davidson controls other land in the Timmins area. Vital has a 100% interest in 18 claims adjacent to the Tisdale property.

In answer to a question by a shareholder, Kent said Davidson last year invested about $300,000 in a plastic engine technology company in Kingston, Ont., but has since pulled out of the company. Kent said Davidson hopes to recoup about one-third of its investment.

The company is also involved in real estate in southern Ontario. One of its deals involves a partnership position in a residential development in the community of Maple just north of Toronto. Kent is hopeful of a start to the project during the second half of 1989.

Elected to Davidson’s board of directors were Kent, William Dingwall (chairman), Bruce Ralph and Alvin Ulsrud.

Davidson recorded a net loss of about $1.4 million for 1988, compared to a gain of $52,000 for the previous year.

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