Muscocho Explorations and its associate companies (Flanagan McAdam Resources, McNellen Resources, Chesbar Resources and Tashota-Nipigon Mines) will be extremely busy exploring this year, says Terry Flanagan, president of Muscocho. In total, the Muscocho group could spend up to $16 million, he adds. Last year, exploration expenditures reached $33 million. However, the 1988 exploration budget does not include the substantial pre-production outlays that are expected this year at two projects — the Magino property, near Wawa, Ont., and the Magnacon, near Mishibishu Lake. Both Magino and Magnacon are on the brink of firm production decisions as we go to press. Magino is the more advanced of the two. From the actual exploration budget, $750,000 has been allotted to the Magnacon project. At Muscocho’s producing Montauban mine, in Quebec, preliminary figures suggest that some $500,000 will be spent in the immediate mining area and a further $400,000 in the general area.
A major new project is the Jerome, 140 miles northwest of Sudbury, Ont., where the dewatering that is in progress will permit underground sampling, mapping and diamond drilling, as well as surface drilling. Tentatively, $3 million has been set aside for the search at Jerome.
Another advanced project is the Chester Twp. joint venture with Chesbar Resources (60% interest). Extensive underground exploration is in progress and the budget being considered, but not yet established as final, could top $2.5 million.
Through Tashota-Nipigon Mines, a 25% partner, substantial expenditures are expected for the Spud Valley gold project, near Zeballos, B.C. An approximate $2-million program is under consideration. Exploration spending at the McWatters-Clerno project, near Rouyn, Que., could reach $6 million.
The name Muscocho is synonymous with the Chibougamau area of Quebec, and in this area the company plans a high level of activity on at least seven projects. The most senior of these is the Mop ii and the adjoining Gwillim Lake project. Proposed expenditures at these two plays have been set at $1.2 million. Another $800,000 could be spent on less advanced plays. North of Chibougamau, $300,000 has been earmarked for the Lac Levack and Lac De Montagne platinum group prospects.
On the East Coast, some preliminary work is scheduled for a property in New Brunswick, while the substantial joint-venture project with Noranda Explorations in the Baie Verte area of Newfoundland (more than 1,800 claims) will be continued. Spending there could reach $750,000. Finally, a gold project in the Carmacks area of the Yukon is budgeted at $400,000.
The Muschocho group has its headquarters in Toronto, Ont.
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