Exploration work continues at five Syngold projects

Exploration work will continue this year on Syngold Explorations’ gold projects, in particular on the Deka and Owl Creek West properties, and the company is in the market to purchase additional properties, President Barry Simmons told shareholders at the annual meeting.

The company, which spent $3 million in flow-through funding in 1986 on exploration work at four of its five properties, raised another $2 million earlier this year for its 1987 exploration program.

Syngold, which reported a net income of $11,611 for 1986 compared with a loss of $60,785 for the previous year, raised working capital of $1.35 million in 1986 which allowed the company to eliminate its debt. Working capital at the end of the year totalled $659,494.

On the Deka property in northwestern Quebec, Syngold has earned a 20% interest from the operator, Minnova Inc., by spending more than $1 million, and may earn a further 15% interest by spending an additional $2 million by Feb 28, 1989. Drilling results to date from two zones indicate an aggregate of possible-plus-probable (undiluted) reserves of 911,000 tons averaging 0.43 oz gold per ton.

At the Owl Creek West property, Syngold has earned a 25% interest from Kidd Creek Mines by spending more than $1 million, and may earn an additional 10% by funding the next $400,000 of work. Subsequent expenditures are to be shared with the operator, Kidd Creek, on a joint-venture basis. One of the deepest holes drilled to date intersected an average of 0.12 oz over 17.2 ft at a vertical depth of 1,650 ft.

The Pandome project, comprising 14 claims in Whitney Twp., near Timmins, was acquired in February of this year. Syngold, under an agreement with Platinova Resources, is earning a 51% interest by spending $500,000 by February, 1991.

The company’s other two projects are located in northwestern Quebec. One of them, the Trudelle property, is located in the Vior- Ligneris belt, about 50 mi north of Rouyn-Noranda. Syngold has a 100% interest in the property.

At the Valdora project, located in the Val d’Or gold mining camp and where Syngold is the operator, the company has earned a 24.5% interest from Aur Resources by spending $500,000. The company may earn a further 24.5% by spending an aggregate of $1 million by Feb 29, 1988.

Syngold is hoping to be in a position to make a production decision for the Deka project by 1988. Mr Simmons did not reveal what other properties the company is interested in purchasing.