Comstate still busy on Timmins area bets

Comstate Resources says it expects results this month from overburden drilling by Noranda Exploration on Comstate’s Mountjoy south property, and diamond drilling by Falconbridge Ltd., on its Thorneloe property.

Both properties are in the Timmins area of Ontario, where Comstate holds six gold properties.

Comstate retains a 15% net profits interest in the Mountjoy, and an 18.75% carried working interest in the Thorneloe property.

On another Comstate holding in the area, the northwest Deloro property, Noranda has completed six holes and plans further diamond drilling later this year or in early 1987, Comstate says. The best reported intersection here gave 0.10 oz gold per ton, over a 1.4-ft core length.

On the southeast Deloro property, Falconbridge drilled six holes, but only geochemical anomalous concentrations of gold were found, and no further work is planned at present, says Comstate President George Fink.

Exploration programs are also planned this year on a property in the north half of Mountjoy Twp., where an option agreement has been signed with Zahavy Minerals, and on four claims in German Twp., under option to Noranda Exploration.

On the financial side, Comstate reports net income for the six months ended June 30 increased to $18,177, against a loss of $26,160 in the similar period last year. Cash flow for this year is $120,577, compared to $122,112 in 1985 and management expects modest increases in cash flow and profit in the second half this year.