$4m program is planned

Encouraged by the sharp upturn in silver prices from last year’s average year low of $5.47(US) per ounce, Silver Century Explorations is gearing for a major $4 million underground exploration program of its strategically located holdings in the heart of the Cobalt camp, consisting of three former producers that turned out a combined 9.4 million ounces in former operations. This will be a joint venture with parent Agnico-Eagle Mines and will extend over a 3-year period.

To finance its portion of the cost of the project, Silver Century is arranging for some $3.5-4 million in new financing, Barry Landen, secretary-treasurer told an annual and special meeting of shareholders held in Toronto this week. They voted unanimous approval of an amendment to an earlier agreement with Agnico, which company is spending $1.5 million to earn a 50% interest in Silver Century’s Coleman Twp. properties, as well as turning over certain of Agnico’s adjoining holdings to the joint venture.

The new undertaking, which will be a continuation of the work Agnico has been carrying out, will be targeted at a number of selecetd zones including a 2,000 ft section of relatively untested ground along the lower diabase contact. This has proved highly productive at other nearby areas but has received only limited investigation to date because of its inaccessibility from any of the present three shafts. This will likely call for the putting down of a ramp or slashing out what is known as the King Edward shaft to production size.

Also to be investigated will be the former boundary zone between the claims Agnico is now turning over and the original Silver Century western ground.

Another plus in the Silver Century picture from the company’s now close association with Agnico is the latter’s new and nearby milling complex, as well as its related refinery.

Agnico now controls the Silver Century company through direct holdings of 698,700 shares (19.75%) and another 696,366 shares purchased on the open market by Mentor Exploration and Development another company under Agnico’s wing.