Queries Slack leaves Belmoral in great shape

As an owner of Belmoral Mines’ common shares, I would like to be brought up-to-date on the activities of this Toronto-based company. N.M. Prince Albert, Sask. (Set 8 1/2 pt on 10 times roman across ONE column)

While President J. Malcolm Slack is no longer running the company, — he was succeeded in October by Chairman Kenneth Dalton — Belmoral Mines appears to be in great shape.

When Slack decided it was time to try something else, he left a company with $30 million cash, two producing gold mines, a processing mill in Val d’Or, Que. and exploration interests in a number of properties.

The heart of the company’s operations is located on 21,000 acres of virtually unexplored property called the Bourlamaque Batholith. In this area Belmoral has two gold mines — the Ferderber and Dumont — which together produce around 50,000 oz gold annually plus a modern 1,500-tpd flotation and cyanide mill.

Belmoral is currently exploring the area immediately surrounding the mines and with 60,000 ft of drilling completed during the first half of this year, the company is looking for further extensions of the Ferderber ore zones.

Belmoral’s other interests include:

* A 30% interest in Montreal- listed Wrightbar Mines which owns 21 contiguous claims in Bourlamaque Twp. and Abitibi East. As reported (N.M., Oct 12/87), Wrightbar had spent about $7.75 million on surface and underground exploration on this property where probable reserves stand at 260,400 tons of 0.212 oz gold per ton.

Belmoral is conducting the current program which calls for 40,000 ft of surface and underground drilling

* A 40% interest in Vancouver- listed Canreos Minerals which has four potential mining claims and 23 unpatented mining claims near Missinabie, Ont. About 65,000 tons of ore grading 0.15 oz gold were mined from open pit operations at Missinabie during the recent third quarter.

In a bid to justify construction of a mill, Belmoral is conducting a 25,000-ft drill program at Missinabie and an additional 20,000 ft of drilling was scheduled to begin this winter at the Melba Mine property near Kirkland Lake, Ont.

* A 50% property interest in 56 contiguous mining claims and 12 mining claims owned by Broulan Resources of Toronto. Located near Timmins, the Broulan properties consist of four former producers adjoining the western perimeter of the formerly producing Hallnor Mine and currently producing Pamour Mine.

With Belmoral acting as project manager, the partners are spending $14.4 million to explore an area between 2,500 ft and 5,000 ft where it is hoped that some mineralized structures from the adjoining Hallnor and Pamour mines extend onto the Broulan claims for nearly four miles.

Future plans include rehabilitation of the existing shaft and sinking it an additional 1,000 ft by August, 1988. Around 70,000 ft of diamond drillling is also planned.

* A 56% interest in Toronto- based Vedron Ltd. which is currently attempting to bring a former producer called the Buffalo Ankerite property near Timmins, Ont., to production later this year.

According to the latest reports, a decline ramp has been driven almost to the 500-ft level and the mineralized zone is expected to be defined along a strike length of about 1,200 ft on the 275-ft, 375-ft and 500-ft levels.

Current exploration is expected to confirm reserves of over 500,000 tons grading 0.23 oz to 0.33 oz gold above the 500-ft level and a decision to construct a 500-tpd mill on site will be made early in the new year, Vedron has said.

The joint venture partners have also announced a surface exploration program to investigate a group of claims immediately north of the present underground exploration.