Program begins at Eagle Nest Project

A $300,000 exploration program operated by Corona Corp. (TSE) is now under way on the Eagle Nest property located one mile northwest of the producing Nickel Plate gold mine near Hedley, B.C.

According to Agio Resources (VSE), the property is underlain by the down-dip extension of the mineralized beds hosting the Nickel Plate orebodies.

Corona, operator of the Nickel Plate mine, and associated company Golden North Resource Corp. (TSE), are equally funding this initial program to earn an 80% interest in the property from Agio.

The first phase of the program involves pushing a road to the 3700 portal to provide access to the underground workings on the property. The program proposes 5000 ft of underground diamond drilling to test the sulphide bearing skarns encountered in earlier drill programs. Drilling is planned to start in mid-September and will be carried out from the drill stations in the 3700 level.

Agio says previous drilling on the property intersected numerous mineralized intervals returning values ranging from 0.11 to 0.62 oz gold per ton. The best intersection was 0.128 oz gold over 17.2 ft. Herman Plank, president, says most of the property remains unexplored. File: EDITORIAL2 jb September 14, 1988 editorial 36 pt., ITALIC Boosting exploration in Newfoundland

Newfoundlanders know a good thing when they see it. That’s why the provincial government there is going all out to help small scale entrepreneurs find and develop the province’s mineral resources. Other provinces — even those that traditionally reap greater rewards from the minin g sector — might do well to take a good look at what the nation’s youngest province is doing.

Mining accounts for 7.1% of Newfoundland’s gross provincial product, a large part of that coming from iron production in the Labrador trough. The total of all primary industries in the province, including fishing, forestry and agriculture, is just 10.4%. In 1987 alone, the mineral exploration industry spend $26 million in Newfoundland and Labrador.

So it shouldn’t be surprising that the province is looking to boost the sector even more. And it’s not trying to do the job itself, just trying to establish a climate where mineral exploration and development can fluorish.

One example is a stock savings plan instituted earlier this year. Through this plan, an investor can earn personal income tax credits by purchasing eligible equity shares in a Newfoundland company. The idea originated in Quebec where it has been a great success and, while it is not limited to mining companies, it is a good way of getting local investors to back small companies doing exploration or early development work. Local investors tend to be loyal investors, and loyal shareholders are something junior exploration companies have often in their search for flow-through funds.

The government is also offering to provide a subsidy to companies making their first successful public share offering. The subsidy would be to offset 50% of the professional fees, excluding underwriting fees, as well as printing and registration costs. Again, the result should be more local companies with local shareholders.

A third program, a joint effort of the federal and provincial governments, is directed specifically at the mining industry. Ottawa will put $500,000 for a provincially delivered Mineral Industry Assistance Program. The funds will be available to help offset the cost of feasibility studies, market studies and demonstration projects. It could also be used to finance the cost of infrastructure components such as roads that could make many of the small industrial mineral deposits in the province viable. Newfoundland’s industrial minerals sector is an important part of the provincial economy with 90% of the products being exported to Europe and the United States.

Also in the joint program is a prospector’s assistance program. Modelled after British Columbia’s FAME program (Financial Assistance for Mineral Exploration). The Newfoundland version lets prospectors apply for up to $5,000 in outright grants toward a field season’s expenses. A portion of that will be up-front to help grubstake a prospector with the balance paid at the end of the season.

None of these programs will be enough to make or break a mining venture in Newfoundland, but they are an indication of the attitude the province has toward the individuals and small companies that can form the foundation for a vibrant mineral exploration industry. It’s an attitude that should serve the province and its people well.