The new owner of Central Crude (TSE) plans to spend about $500,000 on a definition and exploration drilling program at its Eagle River gold property near Wawa, Ont.
At the annual meeting, President Conrad Hache said the company, which is being renamed River Gold Mines, will have two rigs in operation by mid-July. Hache is also president of Western Quebec Mines (TSE), which acquired a control position in Central Crude earlier this year from Hemlo Gold Mines. Planned are 7,500-8,000 metres of drilling to a depth of 150 metres. The program will concentrate on zones 8 and 6 which have undergone exploration by previous owners. The company hopes to confirm existing reserves and expand the property’s reserve base.
Existing infrastructure includes a ramp and three levels underground, and surface installations.
A day after the annual meeting, the company announced it had reached an agreement with Maison Placements Canada for a special warrants financing worth up to $9.3 million. (The deal is subject to regulatory and other approval.)
Maison will sell, by private placement, at least 5.5 million and a maximum of 6 million special warrants at $1.55 each. One special warrant entitles the holder to acquire one unit consisting of one share and one warrant; the warrant entitles the holder to acquire one share at $1.95 by Dec. 29. Central Crude hopes to place Eagle River into production by the fourth quarter of 1995.
Milling options include custom milling, buying an existing mill in the area and installing one on site.
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