EXPLORATION ’87 HUGHES-LANG

The fast-moving, gold-oriented Hughes-Lang Group of Companies kept its corporate growth- through-gold strategy well in place during 1986. The schedule for exploration and anticipated production in 1987 is on track.

The 1986 investment of $45 million put the Hughes-Lang Group in the forefront of Canadian exploration organizations. The game plan calls for a new producing gold mine every year. The prospects now being evaluated, both surface and underground, will enable this plan to be followed well into the 1990s.

At the top of the list is the Val d’Or enterprise of D’Or Val Mines. Here, Louvicourt Mining Management is directing the final stages of an underground activity enabling the measurement of sufficient gold ore to begin regular production. A custom milling facility is under construction, to be operated by a private affiliate, Beacon Milling Co.

At Perron Gold Mines, 45 km north of Amos, Que., intensive, underground sampling drives on four levels are expanding both grade and tonnage estimates on the Sleeping Giant property. Indications from vein exposures and assay results are that millheads in excess of 0.32 oz gold per ton may be attainable with careful, discriminating mining techniques. The 1987 underground evaluation under way will permit the determination of an optimum mining rate. When all the numbers are in, it’s possible that production start-up will be a reality early in 1988.

The longer-range potential of the Sleeping Giant project was recently enhanced by a gold discovery on the 47 sq mi held under development license. This discovery is six miles to the east of the mine area.

Another project that may reach the production stage in late 1987 or early 1988 will be the Duverny project, being operated on behalf of Standard Gold Mines and St. Genevieve Explorations. This shaft collar is 15 km northeast of Amos. Fired up by a series of deep drilling successes, underground tests should establish sufficient size to the new vein structures to allow a solid return from sustained production.

Also in Quebec, east of Rouyn, the Hosco-Heva joint venture, controlled by Eastern Mines and Silver Sceptre Resources is responding well to systematic exploration. Two major new ore zones were located in 1986. As a result underground exploration has commenced with a ramp on one sector of the claims and shaft-engineering in a second sector. The 1986 spending of $4.5 million will increase to $7 million this year. The objective will be the location and definition of five million tons of reserves, a 25% increase over that drilled off to date. At the same time, both rock mechanics and metallurgical studies will be done.

Arbor Resources is aggressively working to turn gold mineralization into ore on land positions ranging from the Yukon to northern Quebec. Arbor also owns a 2.5-million-share stake in Perron. Ore grade intercepts have been drilled on all properties, with extensive testing necessary to define economic tonnage.

Lockwood Petroleum has a 30% participating interest in the Cameron Bay underground exploration project for gold with Nuinsco Resources, the major shareholder of which is Echo Bay Mines. In 1987 Lockwood’s own exploration focus will be on its prospect near Perron, where the first two drill holes located a gold-bearing structure at least one km long.

Gabriel Resources is the lead player in a new gold-copper play with massive sulphides in the Quesnel Trough, near Prince George, B.C. The drill holes put down in 1986 showed interesting amounts of both gold and copper and activities will be accelerated this year.

Other Hughes-Lang companies which have exploration programs under way and developing drill targets for gold in B.C., Ontario and Quebec include: Gallant Gold Mines; Cream Silver Mines; Kangeld Resources; Meridor Resources; and Rise Resources. This grassroots approach has located a number of major regional structures with gold potential.

As a result of the financial participation of individuals connected with the Hughes-Lang Group, in the grubstake that led to the LaFosse Platinum Group discoveries, a number of Hughes-Lang companies have selected choice exploration permits in the Tetty Lake district of New Quebec. These include D’Or Val, Maghemite Inc., Gabriel, Rise Resources, Ebony Gold Mines, Cream Silver, Kangeld and the Hughes-Lang Corp.

This latter company is the most recent group-sponsored vehicle which will see public trading in 1987. Among its exploration assets is an option on a half-interest in the burgeoning gold camp at Bonaparte Lake, north of Kamloops, where Inter- Pacific Resources has already sampled a number of high-grade veins.

This year will also see a new exploration direction by two well-heeled companies with familiar new names: New Goliath Minerals and New Golden Sceptre Minerals. The debt- free status of the Hughes-Lang Group and its strong inventory of gold projects at every stage means 1987 exploration investment in the same range as 1986.