New lease on life for New Kelore

Dormant for a period of time prior to 1987, Toronto-based New Kelore Mines is getting a new lease on life.

Speaking at the annual meeting attended by two registered shareholders, President Stephen Case said the company, flush with working capital of $985,000, is looking for new investment opportunities. Of the aforementioned total, $800,000 was raised by way of a private placement.

New Kelore retains a 25% net profits return in gold property in Hislop and Guibord twps. in the Timmins area of northern Ontario, in which Goldpost Resources is earning a 100% interest.

Current reserves at the property stand at 600,000 tons grading 0.21 oz gold per ton, to the 450-ft level, Case said. The property has undergone 45,000 ft of surface drilling since late 1986. Case said Gold Post is preparing to go underground in the next stage of its exploration program; a decision has yet to be made on whether to use the existing shaft workings or drive a new ramp.

In other property news, Case said his company has terminated its option on the Hurtubise and Singer twp. properties.

Elected to sit on the board of directors of New Kelore, which last year underwent a change of control, were Case, Douglas Nicholson, Carl Ashenhurst, Geoffrey Mitchell and Mervyn Upham. The five directors have been granted options to purchase 150,000 shares each of New Kelore at 33 cents per share until Jan 4, 1993.

The company had more than 9.4 million shares outstanding as of Dec 24, 1987. Largest shareholder is RFC Resource Finance Corp., with a 24% interest. Case is also president of rfc.