Investors catch Madeleine Lac des Iles platinum fever

Investors have apparently caught the Lac des Iles bug judging by the recent market action on Madeleine Mines. This company plans to bring into production the optioned Lac des Iles platinum-palladium project, believed to be the best undeveloped platinum group metals deposit in Canada.

Indeed, there have been at least two investment letters, one from Merit Investment Corp. and a second coming out of Europe, that have been bullish on Madeleine.

A short three weeks ago Madeleine was trading on the Toronto Stock Exchange at the $3.40 level with a 52-week high and low of $3.70 and $1.10 respectively. The trading pace picked up in late October when the price went over the $4 mark. Action quickened last Monday when the price raced up 70 cents to new-high at $5.50 with nearly 45,000 shares changing hands. The following day the price hit $5.75 on a volume of 79,979. On press-day, Madeleine closed at $5.

Meanwhile, the company is continuing its $2.75 million diamond drilling program on the Lac des Iles project, located about 50 miles north of Thunder Bay, Ont. The property is held by The Platinum Group Mines Ltd, a private company owned 90% by Boston Bay Mines and 10% by J. P. Sheridan. Boston Bay, in turn is controlled by Belleterre Quebec Mines which holds 39.7% of the issued shares.

Estimated reserves at the Roby deposit are 22.5 million tons grading 0.18 platinum group metals per ton. The platinum to palladium ratio is approximately 1:7.

The current drilling program, funded by flow-through financing, is aimed at proving-up the extension of the orebody, increasing proven reserves and determining the location of the shaft that will be sunk once the open pit is mined out.

Production at a planned rate of 3,000 to 3,500 tons daily is tentatively set for late next year. The estimated cost to bring the mine into production is approximately $25 million and it is understood progress is being made on senior financing.