HSK boosts property holdings

A further 200 claims have been added to the holdings of HSK Minerals (TSE) in the Kirkland Lake area, shareholders were told at the recent annual meeting, making the junior-mining company a major property holder in that part of northern Ontario.

President Hugh Harbinson said staking of the 200 claims, located south of the main Kirkland Lake Break, was completed the night before the annual meeting. Other properties in the area in which HSK has interests are Vigrass Lake, Gull Lake and Teck A and B.

In all, the company has interests in about 300 claims in the area, Charles Page, vice-president exploration, said. And, through its association with Queenston Gold Mines (TSE), it has interests in about 600 Kirkland Lake area claims, he said.

HSK and sister company Joutel Resources (TSE) last year bought a combined 40.6% interest in Queenston, an acquisition Harbinson said “has delighted us.” Queenston, which will celebrate its 50th anniversary next year, is involved in exploration projects with various partners, including Lac Minerals (TSE), American Barrick Resources (TSE) and Inco Gold. HSK bought 2 million Queenston shares for $4 million, raising the funds through a share-warrant issue.

HSK reported a deficit of about $690,000 at the end of 1987, but a cash position of almost $516,000. At the end of the first quarter of this year, the company recorded a cash position of about $524,000.

Shareholders approved a resolution authorizing the company, which is registered in Manitoba, to apply for continuation under the Canada Business Corporations Act. Harbinson said the change was sought because HSK’s major interests now lie in Ontario, Quebec and Newfoundland. During 1987, the company reports it spent more than $450,000 on acquisition and exploration costs, with its joint-venture partners spending another $700,000.

In January of this year, HSK signed an option agreement with Barrick whereby the latter may earn a 50% interest in the Muskasenda Lake property located south of Timmins through payments totalling $250,000 and by spending $1 million on exploration work by March 31, 1991.

Also, in March of this year, the company acquired a 100% interest in 52 claims in the promising Mishibishu Lake area near Wawa, Ont.