NEWS ROUNDUP (December 30, 1991)

Vancouver-based Athabaska Gold Resources (TSE) has obtained financing to acquire from Chevron Minerals the 40% interest it doesn’t already own in the Nicholas Lake gold project in the Northwest Territories.

The company has secured $100,000 from a private placement of 300,000 shares priced at 33 and 1/3 cents to a European Finance house. Combined with a second $250,000 private placement arranged by director Ted Kennedy and President James Kermeen, the European financing enables Athabaska to increase its project interest to 100%.

Athabaska is paying Chevron $300,000 for the asset and reimbursing the company for $40,000 spent on the Nicholas Lake property.

Having already outlined preliminary reserves of 946,000 tons grading 0.46 oz. gold per ton, the company is spending $800,000 to test five new targets away from the Main zone. Exploration is funded by a private placement by Royal Oak Mines (TSE) which has the right to earn 33% of Athabaska Gold.

A nickel play southwest of Rouyn-Noranda, Que., near the Quebec-Ontario border, has attracted exploration teams from a half-dozen companies.

The showing, mainly nickel but with copper, zinc, platinum and cobalt mineralization, has caught the attention of Falconbridge, Soquem, Cameco (TSE), Audrey Resources (TSE), Joutel Resources (TSE) and Kimex Resources (ME).

All of the companies have optioned claims from Ogima Exploration, a private Quebec firm headed by David Cote. About 90% of the 400-500 claims in the Lac Opasatika (Lac Long) area staked by Cote have been farmed out. Kimex, a junior with offices in Rouyn-Noranda, confirmed it has undertaken some field work. However, a spokesman said the property is not the company’s main exploration focus at the moment.

Cameco, based in Saskatoon, Sask., confirmed it performed surface work on its claims this past summer. The company is currently doing some linecutting and ground geophysics.

The keynote speaker at the Jan. 6 annual induction ceremony of the Canadian Mining Hall of Fame, A.J. (Tony) Petrina, president of Placer Dome (TSE), has been forced to cancel because of health reasons. A new speaker will be announced.

Eight new members will be inducted into the Hall of Fame at a supper at Toronto’s Royal York Hotel.

A 2,500-ft. drilling program is scheduled to begin on Canmine Resources’ (CDN) FER copper-zinc property, 45 km northeast of Flin Flon, Man., in the last week of January.

The program will test the existence of either a major fold axis or primary basin at the main zone.

“That type of structure could host large deposits as opposed to small deposits,” said Canmine President Ted Ellwood. “It has the same type of structure and alteration as the Geco.”

The Geco mine near Manitouwadge in northwestern Ontario is one of Canada’s oldest and largest base metal producers. As of Dec. 31, 1990, it contained reserves of just over nine million tonnes grading 1.62% copper, 2.76% zinc and 40 grams per tonne silver.

Drilling will focus on the main FER zone, which has a strong electromagnetic conductor with a strike length of 300 metres. Three previous shallow holes intersected grades of up to 6.8% zinc, 12 grams gold per tonne, and 150 grams silver in multiple polymetallic lenses.

An inquiry into the sale of assets formerly held by Westfield Minerals (TSE) to Northgate Exploration (TSE) has been formally closed by the director appointed under the Canada Business Corporations Act.

The inquiry was launched after shareholders of Westfield complained that the assets, including Westfield’s interest in a Chilean gold mine, had been sold to Northgate at depressed prices and without their consent. The transaction occurred in 1989.

Because of an extensive analysis of all materials relating to the sale, including an independent valuation by Toronto broker Burns Fry, the director has concluded that no further action is warranted.

Toronto-based Campbell Resources (TSE) has reorganized wholly owned subsidiary Meston Resources which owns the Joe Mann gold-copper mine at Chibougamau, Que.

All of Campbell’s mining assets and mills at Chibougamau, previously held by two separate companies, have been consolidated in Meston. In addition, Meston has completed a tax structure financing under which it issued to a group of Canadian financial institutions an aggregate of $50 million of guaranteed subordinate debentures and guaranteed retractable preferred shares. The shares were issued on a flow-through basis. Net cash proceeds received by Campbell in 1991 from the financing, after providing for the costs of the guarantees, are $4 million. A 25% owned affiliate of Northgate Exploration (TSE), Campbell is spending $10 million to extend the Joe Mann shaft from 2,010 to 2,700 ft.

In 1990, the mine produced 67,000 oz. gold and 1.3 million lb. copper.