Nuinsco to raise $1 M for Cameron program

Under an agreement with Middlefield Resources fund 1988, Nuinsco expects to raise $1 million through a flow-through share issue priced on a 20-day weighted average pricing formula on stock traded before Feb 26.

Nuinsco shares were trading recently on the Toronto Stock Exchange at 93 cents in a 52-week range of $3.50 and 50 cents .

Proceeds of the issue will be used to finance surface drilling at Cameron Lake and to extend an underground ramp from a depth of 685 ft down to 835 ft.

The program was designed by mining consultant Malcolm Slack who was named Chairman of Nuinsco after Echo Bay Mines sold its 53.8% stake in the company to Deak International of Toronto.

Although Echo Bay recently announced that the Cameron Lake gold deposit is uneconomic at gold prices below $550(US) pe oz — the deposit contains 788,000 tons grading 0.194 oz gold per ton — Slack has stated that costs can be reduced and additional reserves proven up.

Slack was retained by Nuinsco to conduct a pre-feasibility study and he is expected to table a report this week.

Accordingly, the company, tenders have been called for drilling at Cameron Lake and the Monte Cristo property which is located six miles further east. Drilling equipment is expected to be moved on the mine site within the next few weeks.

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