News in Brief (September 22, 1986)

Contender Resources has changed its name to Strategic Communications Ltd. on a share-for-share basis.

Gordex Minerals has started a $1-million exploration program on its Cape Spencer gold property in Nova Scotia. The company is already producing gold by the heap leach method from one claim on its property and intends to explore 26 other claims that have not been previously tested.

McKinney Resources has changed its name to Cons. McKinney Resources Inc. on the basis of 1 new for 2 1/2 old shares.

Fifth Generations Systems has changed its name to China Sea Resource s Corp. on a share-for-share basis.

Oracle Resources is issuing 166,667 shares to First Exploration Fund 1986 at $3 per share to raise $500,000 for exploration on two of its four mineral properties in the Pickle Lake area of northwestern Ontario.

The Opapimiskan Lake property covers multiple gold zones associated with an iron formation and is adjacent to the Musselwhite property held by a consortium of major mining companies on which a number of gold deposits have been reported in association with the same iron formation.

The Agutua Arm property covers high grade gold-silver and base metal prospects that have had limited previous exploration.

Drilling is starting immediately on the Opapimiskan Lake property with a minimum of 10,000 ft. to be drilled. Drilling on the Agutua Arm property will start later this fall and will involve a minimum of 3,500 ft of drilling.

Royex Gold Mining has completed negotiations for the private placeme nt of at least $20 million of convertible secured debentures. The debentures will have a 7-year term, callable after three years, with interest of 9%. They are convertible for seven years into Royex common shares at $4 per share. About $17.9 million of the proceeds will be used to purchase 650,000 of International Corona Resources’ 1996 warrants currently being offered to the public.

Jascan Resources has acquired a 70% interest in the Pansilver silver property and equipment from Pancontinental Mining (Canada) in northeastern Ontario’s Bucke Twp. Jascan is arranging financing in order to start underground exploration. The company estimates that $2 million is required to bring the property to the point of a production decision.

Vancouver-listed Proteus Resources has intersected an 8-ft section grading 0.36 oz gold per ton at a depth of 368 ft on a 57-claim property located 10 miles west of the Lockwood Petroleum/Nuinsco Resources/Echo Bay Mines joint venture at Cameron Lake in northwestern Ontario. The hole was drilled over a soil humus anomaly which occurs over a strike length of 2,300 ft. Another hole is out for assay.

Central Crude has entered into an option agreement with Noranda Exploration covering Central’s 101-claim gold prospect in the Mishibishu Lake area of northwestern Ontario. Noranda can earn a 60% undivided interest by spending $1 million on the property by September, 1989, and paying Central $90,000 in cash by September, 1988.

Camindex Mines reports a net loss of $1,776 for the 6-month period ended June 30 compared to a loss of $594,821 for the same period in 1985.

Renabie Gold Mines reports net income of $257,828 for the 3- month p eriod ended June 30 compared to $150,660 for the same period a year earlier. Net income for the 9-month period ended on the same date was $1,107,479 in 1985 compared to a loss of $740,832 in 1985.

Fontana Resources has changed its name to Pac Ed Systems Corp. on a share-for-share basis.

Majorem Minerals has changed its name to Radcliffe Resources Ltd. on a 1-new-for-5-old share basis.

Canadian Gold Resources has completed a private placement of 277,773 shares for $100,000 in working capital. It has also received $150,000 which has been advanced on a total of $500,000 for flow- through shares at $1 per share for exploration in the Beardmore area of northwestern Ontario and the Swayze area of northeastern Ontario.

Mon-Dor Explorations plans to spend $286,000 on its Themines project and $400,000 on its Le Tardif project in 1986. Both of the properties are gold prospects on the east projectionof the Casa Berardi break.

Dawson Eldorado Mines has resumed production at its Plata Inco prope rty in the Yukon Territory on a new zone discovered in late August. Mine control assays are reported to be 200 oz silver per ton.

In a transaction valued at $5.25 million, Western Goldfields is acqu iring Oronoveda Inc. which will increase Western’s interest in the operating heap-leach Hog Ranch gold mine in northwestern Nevada to 42% from 32%. Western expects to increase its interest to 60% when the mine reaches commercial production in the next few weeks. The mine is expected to produce 50,000-55,000 oz of gold annually. Orenevada is a subsidiary of Orofino Resources, which is in turn a subsidiary of Northgate Exploration.

Great Lakes Group has completed a private placement of six million s hares to raise $150 million. The issue increases the company’s book equity value to over $550 million.

Dundee-Palliser Resources reports net income of $67,656 for the 6-month period ended June 30 compared to a loss of $36,835 for the same period in 1985.

McAdam Resources plans to start drilling immediately on its Spud Val ley property, a former gold producer, on Vancouver Island. The company plans to complete at least 5,000 ft of drilling and as much as 25,000 ft by the end of February, 1987, in order to upgrade reserves currently estimated at 429,000 tons grading 0.25 oz gold per ton.

Freeport-McMoRan Gold has started gold production from the new heap- leach facility at its Jerritt Canyon mine in Nevada with the first gold bar being poured Aug 18. The project is designed to process about 400,000 tons of gold ore per year with an average grade of about 0.05 oz gold per ton. Freeport owns 70% of the operation.

Camreco Inc. reports a loss of $125,095 for the 6-month period ended June 30 compared to net income of $330,072 for the same period in 1985.

Yorbeau Resources plans to undertake an offering of units and receip ts of the company to the public. Each unit will consist of a common share and one-half a share purchase warrant with each full warrant exercisable to the end of 1987 to buy one common share. The receipts, offered separately, entitle the holder to receive flow- through shares for funding exploration.

Vista Mines, an affiliate of Vista International Petroleums, says th at with its first-time share issue, valued at $5 million, it becomes the first company to issue shares that qualify for the new, recently- announced Saskatchewan stock savings tax credit. The issue is available only in Saskatchewan, Vista says.