Nuinsco/ Seadrift active in Quebec

With a healthy funding package in place, activity is continuing at a brisk pace with seven drills in operation at the Aldermac and Lac Dufault prospects held in joint venture with Toronto-listed Nuinsco Resources and Alberta-listed Seadrift International.

Three drills are at work at the Aldermac project located in Beauchastel Twp., about nine miles west of Noranda, Que. A number of new mineralized zones have been encountered here, several of which are in the order of 400 ft wide and carry anomalous zinc, copper, silver and gold values.

One zone in DDH 87-1 has about 1,500 ft of continuous mineralization, anomalous in zinc, copper, silver and gold. Within this zone is 800 ft of intense sodium depletion, a strong geochemical indicator of favorable conditions for the deposition of massive sulphide deposits.

A number of down-hole pulse em anomalies have been detected in the currently drilled holes as well as holes drilled during the 1970s. Follow-up holes are now under way to test them.

Under its option agreement with Nuinsco, Seadrift can earn a 49% undivided interest in the property following the completion of exploration expenditures of $1 million over a 5-year period at a rate of not less than $200,000 per year. All future expenditures will be on a 51/49 joint venture basis with a pro- rata dilution clause.

To date, Seadrift has spent in excess of $600,000 and will have earned its 49% interest by this spring, four years ahead of schedule.

At the Lac Dufault project, located in the heart of the Noranda camp, follow-up drilling with four rigs is continuing on several high priority targets.

One is the C-contact horizon in the west portion of Lac Dufault, while another is the area creek fault zone, a potential gold target on the lake in the southwest quadrant of the property. Another target is the northwest-southeast structure and associated geophysical anomalies detected on the North Sergious Bay property.

Seadrift can earn a 60% interest in the property upon completion of $1 million in exploration work. After that, the option will be converted to a 60/40 joint venture between the two companies.

Seadrift’s funding package for the 1987/88 exploration programs consists of a $12-million flow-through financing commitment with First Exploration Fund 1987 & Co. Ltd. Partnership. The first $2 million of this year’s program was subscribed at $3.60 per share. The balance is to be drawn down at the election of Seadrift in $1-million allotments at the previous 30-day trading average plus 20% added thereto.

In addition to these funds, a $1- million private placement has been entered into with underwriter Deacon Morgan McEwen Easson Ltd. The placement is a unit offering consisting of 400,000 shares and 400,000 warrants.

At press-time Seadrift was trading on the Alberta Exchange at the $3 level, while Nuinsco hit a new- high of $3.40 on the tse.