With cash in its treasury, Greater Lenora Resources (TSE) is looking for development from its Canadian property interests in Quebec, Ontario, Saskatchewan and the Yukon, and is even looking to Mexico for future growth.
President Robert Kasner said at the recent annual meeting in Toronto that Lenora has been negotiating to acquire an interest in a gold property in Mexico and that a deal may be announced shortly. Recent changes in legislation governing mining by foreigners in that North American country have enticed a number of senior and junior Canadian mining companies there.
The company’s most advanced property is the Goldfields gold project near Uranium City, Sask., where an associated company, RJK Mineral (ASE), is earning a 60% interest. (To earn that interest, RJK must make a $1-million payment before the end of 1991.) Lenora is reporting a combined preliminary reserve estimate for the project’s Box and Athona pits of 29.9 million tons of low-grade material.
In the Yukon’s Faro area, the company said an exploration program has been planned for this summer for a lead-zinc-silver prospect. In northeastern Ontario, Lenora has high hopes for its Harker-Holloway gold property in which its joint venture partner is Inco (TSE). The property sits immediately south of the Mattawasaga property of American Barrick Resources (TSE) where a new ore discovery has been announced. Ore from the Mattawasaga property will feed Barrick’s nearby Holt-McDermott mill.
The sale to Barrick in 1989 of property in northeastern Ontario in which Lenora had a 35% interest landed Lenora $1.58 million and a 2% net smelter royalty which kicks in after one million tons of material have been extracted from the property.
Short-term investments are expected to yield Lenora interest income of about $130,000 in 1991, Kasner said.
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