Sofimines raising funds for mining exploration

Encouraging results are reported to date by some of the 16 junior mining firms which have entered into an exploration financing agreement with Sofimines 1987 and Co., Limited Partnership. At a press conference attended by executives of the mining companies, Soficorp Management Inc., general partner in Sofimines, said most of the exploration programs initiated this autumn have either confirmed previous results or indicated new assay values for the properties.

The financing agreement, under which the companies (one or two additional companies are discussing joining) will issue flow-through shares to Sofimines in return for exploration funding, provides for a $55-million maximum offer and a $7-million minimum.

The 1987 partnership is the fourth for Sofimines, which raised $23 million in 1986, $5.97 million in 1985 and $2.5 million in 1984. Soficorp vice-president Robert Beauchemin told The Northern Miner a bigger national partnership is planned for 1988.

Flow-through financing provides tax deductions for investors on money spent by mining companies on exploration and development. Currently, an investor is allowed a tax writeoff of $1.33 for each dollar spent. The federal government, however, has proposed doing away with flow-through shares, first by reducing the rate of depletion to 16220/30303 1/2% on July 1, 1988, and then eliminating flow-through completely as of July 1, 1989. Results highlighted

Of the 16 companies registered this year with Sofimines, four were singled out for their results to date: Abitibi Metals Mines, Vassan Resources, Cache d’Or Resources and Jilbey Industries.

Abitibi Metals, based in Val d’Or, reports grab samples from its Jolin property, acquired in September, have returned values of 0.5 oz gold per ton, 0.62 oz and 0.82 oz, with trench walls assaying up to 0.25 oz. A couple of drill holes have cut 0.14 oz over 10.5 ft and 0.22 oz over 9 ft; a third hole intersected 1.2 oz over 3.9 ft.

From its Vassan property, located near the former producing Siscoe mine, Vassan Resources reports values as high as 0.57 oz over 3.6 ft and 0.52 oz over 37.3 ft, from a September drilling program. The company has also signed an agreement with Rouanda Mines, a subsidiary of Cambior Inc., to allow Vassan to earn a 40% interest in the Basignac property in Destor Twp. by spending $3 million by May, 1988.

Cache d’Or of Val d’Or reports a zone on its Dubuisson property, which adjoins property belonging to Kiena Gold Mines, has been enlarged to a strike length (which continues to grow in both directions) of 250 ft. Visible gold is reported. One hole cut 4.35 oz over 1.5 ft; other holes intersected 1.61 oz over 1.8 ft and 0.58 oz over 2 ft. Oreshoot

Reporting encouraging results from the Fontana property in Duverny Twp. is Vancouver-based Jilbey; the company says a 700-ft- long oreshoot assayed 0.21 oz over 5.9 ft to a depth of 275 ft. Also, the company says recent drilling intersected the shear zone at a depth of 600 ft with a value of 0.11 oz over 21 ft. Higher gold values have been indicated from drilling on the various vein structures. Jilbey, with a 25% interest, has optioned the property to Bay Resources and Services, which may earn a 75% interest.

Reports on the remaining 12 companies follow:

Toronto-based Carling Gold Resources reports a preliminary assay on a 1,400-ft shear zone (Phoenix vein) at its Thunder Bay property revealed 1.75 oz across 3 ft.

Val d’Or-based Abitibi Resources reports geophysical surveys have identified long conductors along a north-south strike at its Ducros property, and that bore holes intersected solid and semi-solid sulphide formations that include pyrrhotite, pyrite, magnetite and chalcopyrite. Work is also under way at the Recher property in Casa Berardi Twp. near the Golden Pond site. Joint venture pact

Working on a number of different properties is Ramcor Resources of Vancouver. The company has entered into a joint venture agreement with Noranda Exploration, with Ramcor to provide $550,000 for exploration work on Noranda properties in three townships.

Mon-Dor Explorations of Dorval, Que., has interests in a number of properties, including the Honorat- Weir prospect located in the Gaspe Peninsula, where a fifth mineralization has been identified and extensions to the No 4 vein have assayed 0.36 oz across 5.2 ft. The company also has an option on property to the east belonging to Noranda.

Based in Saint-Felicien, Que., Brosnor Exploration reports ramp work on the Louvicourt property and preliminary work on the McKenzie property. The company has announced the sale of its interest in the Belleterre property to Riverton Resources of Vancouver for $875,000 and a 2% net smelter return royalty.

Gold Vessel Resources of Calgary reports work has been undertaken on the Cresus property, located west of the Fontana shear in Duverny Twp., and on the Caribou property located in the Casa Berardi area. The company says it has entered into a joint venture agreement with Newmount Explorations and Cambior under which it may acquire a 30% interest in the Caribou property.

Drilling a known nickel deposit, the Launay-Trecesson property, with the aim of verifying the occurrence of platinum and palladium, is Dumont Nickel of Val d’Or. Work is also being performed at two other properties.

Dorval-based Valmont Mining Explorations reports activity on two properties and planned work on two other properties.

St. Genevieve Resources of Montreal plans an exploration program for its Courville property where a gold-bearing porphyry zone measuring at least 1,350 ft long and 200-300 ft wide has been identified. The property underwent drilling in the 1960s. St. Genevieve recently paid $10 million to purchase about 3.7 shares of gold-producer Louvem Inc. More plans

Rouyn-Noranda-based Ecudor Mining (formerly La Pause Resources) has interests in a number of properties, including the Lac Tremoy prospect where the company reports values ranging from 0.06 oz to 0.39 oz have been found across 1.5 ft to 6 ft.

Parquet Resources of Toronto is drawing up exploration plans for two properties, the Holmwood prospect in northwestern Ontario and the Courville prospect in northwestern Quebec.

Based in Cadillac, Que., Kewagama Gold Mines is proposing exploratory work for the Granada and Kewagama mine properties, both located in northwestern Quebec.