The junior company, with an interest in a couple of gold exploration plays in northern Ontario, is in need of cash flow, Smith told shareholders at the annual meeting.
The company stock, recently trading in the 17-18 cents range, has been suffering of late from low gold prices and a general investor disinterest in the precious metal.
Base metal prices, while they have fallen from their recent peaks, continue to be relatively strong. Interest by investors in base metal prospects still seems keen, as witnessed by the market activity surrounding the recent Aur/Louvem copper-zinc discovery in northwestern Quebec.
Smith said he has been looking at a 4-million-ton base metal deposit with greater tonnage potential as a possible investment target.
Of the company’s two gold plays, one project is at Timmins and the other near Red Lake in the province’s northwest.
At the DeSantis project at Timmins, Golden Terrace is earning a 50% interest in the property from Stan North Mining. The company must still make a payment of $155,000 (due Dec 1, 1989), and is responsible for exploration expenses totalling $2 million (to be paid by Feb 28, 1991).
The DeSantis is a former producer. Probable reserves at the end of 1988 stood at 161,359 tons grading 0.239 oz gold per ton (cut).
At the Richardson Lake project near Red Lake, drilling last year identified probable reserves of 100,000 tons grading 0.2 oz.
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