NEWS ROUNDUP (October 28, 1991)

Bachelor Lake Gold Mines (TSE) intends to sell its controlling interest in 74% owned subsidiary Western Premium Resource (VSE) for about $150,000.

Bachelor said a letter of agreement has been entered into between itself and a consortium of Vancouver investors for the sale of about 10 million Western shares (the 74% interest) at 1.5 cents per share. The shares being sold include 750,000 escrowed principal’s shares.

The transaction is subject to the completion by the purchasers of due diligence examinations by Nov. 7 and to regulatory approval.

Subject to regulatory approval, Texas Star Resources (VSE) plans a private placement of 1.5 million units at 45 cents per unit. Each unit will consist of one common share and one warrant; two warrants will entitle the holder to purchase an additional share at an exercise price of 50 cents during a 1-year period.

In mid-October, International Corona (TSE) received final approval from the Ontario Court of Justice to proceed with a restructuring plan which will involve the creation of a new public company to hold its non-gold assets.

Under the plan, Corona will become a “pure gold” company while the non-gold assets will be held by Dundee Bancorp, an asset management company that will also hold an approximate 30% interest in Corona.

The plan of arrangement was approved by 83% of all shareholders at a special meeting on Oct. 9 in Vancouver. The restructuring is expected to be completed shortly, at which time International Corona and Dundee Bancorp will begin trading as separate and distinct entities.

A $25,000 award of distinction for an innovative flexible conveyor system was given to Dennis Mraz of Saskatoon, Sask., at the recent Manning Awards ceremony in Toronto.

A native of Czechoslovakia, Mraz has patented and put to use 20 inventions. His award-winning “belt bender” is capable of rapidly and abruptly changing the direction of horizontal conveyor belts.

The invention is credited with simplifying underground operations in potash, coal and other types of mines. Continuous mining machines can follow the meanderings of an orebody, with belt bender-equipped conveyors transporting their output around bends and curves to a main conveyor system, helping to increase production.

Six Canadians were recognized this year by the Manning Awards, which encourage and reward excellence in innovation. The principal award winner received $100,000.

The Manning Awards program is named in honor of a former premier of Alberta and Canadian senator, Ernest Manning. Since its inception in 1982, the program has recognized 31 Canadian men and women.

Prompted by encouraging results from a first-phase exploration program, Adrian Resources (VSE) is recommending a program of hand and backhoe-assisted trenching for the More Creek project in northwestern British Columbia.

The property is in the More Creek area, not far from the Eskay Creek gold camp, and adjacent to Noranda’s Goz-RDN property.

The proposed trenching program would be followed by drill-testing of the favorable Salmon River-Mount Dilworth contact on the property. This year’s first-phase program of prospecting, mapping, geochemical sampling and geophysical surveys evaluated the Eskay Creek-type stratigraphy which had been previously identified on the property. (The Salmon River formation overlies the Eskay Creek deposits, while the Mount Dilworth formation occurs in the footwall of the Eskay Creek deposits.)

Adrian has an option to acquire a 50% interest in a portion of the project, based on a recent agreement with Koala Resources (VSE), Akiko-Lori Gold Resources (VSE) and Hemlo Gold Mines (TSE).

Drilling intersected anomalous copper mineralization grading up to 0.5% copper along 3.3 ft. in hole 313-1 at the Mainstreet property in Louvicourt Twp., Beaufield Resources (TSE) and Aur Resources (TSE) report.

The hole, one of a pair drilled by Aur, tested an anomaly near the southern boundary of the property adjacent to Aur’s Lugold copper-zinc-silver prospect. The companies said copper mineralization intersected in the Mainstreet hole is associated with felsic volcanic rocks exhibiting black chlorite alteration, similar to that found on the Lugold property. A second hole tested a target in the northwestern part of the property but did not return significant gold or base metal values, the companies say. Aur, which has an option to earn a 60% interest in Mainstreet from Beaufield, plans a follow-up drilling program. Mainstreet lies to the east of the Aur/Louvem massive sulphide discovery in the same township.

Potash Corp. of Saskatchewan (TSE) said a final prospectus dealing with the qualification of 7,301,133 of its common shares held by CIC Mining Corp. and 3,650,566 warrants of CIC has been filed in all 10 provinces. The company’s registration statement filed with the Securities and Exchange Commission in Washington, D.C., was declared effective Oct. 15, Potash said.

A recent agreement between Prime Equities (VSE) and Springer Resources (VSE) is expected to provide about $200,000 toward further exploration of the Unuk River polymetallic project in northwestern British Columbia.

By way of private placement, Prime Equities agreed to buy 444,445 units (one Springer common share and one warrant to purchase an additional share) at 45 cents per unit. The warrants can be exercised at 45 cents in the first year, and 52 cents in the second year.

The monies raised will be used to fund in part Springer’s share of the current work program on the property which is 37.5% owned by Springer, 12.5% by Cove Resources (VSE) and 50% by Granges (TSE).

Prime Equities currently holds 316,900 of Springer’s 9.4 million issued shares. If the private placement is fully exercised, Prime Equities would hold an approximate 11.68% interest in Springer.

An agreement-in-principle has been entered into by NSR Resources (TSE) with Exploration Kalito of Rouyn-Noranda, Que., for the sale of certain surface rights from NSR’s mining concessions in Rouyn-Noranda.

Subject to regulatory approval, the companies envisage formalizing an option agreement by no later than Jan. 31, 1992.

Kalito will have the option to purchase, in stages, about 150 acres of surface territory during a 15-year period for an aggregate of $700,000, inclusive of annual option payments.

The Kalito-optioned acreage represents about one-third of the surface rights owned by NSR on its five concessions in that part of the province.

Golden Tag Resources (VSE) has signed an agreement with Hemlo Gold Mines (TSE), allowing the junior to earn 50% of Hemlo’s interest in the Quill Lake property, a 42-claim gold prospect in northwestern Ontario.

Before year-end, Gold Tag says it will spend $150,000 line cutting, prospecting and trenching the property, which lies on the east end of the Sturgeon Lake greenstone belt.

Hemlo is earning a 100% interest in Quill Lake from prospector Adam Benderite. Gold mineralization on the claim group is associated with

arsenopyrite-bearing sulphide bands near iron formation. On a regional scale, numerous sulphide occurrences lie along the 40-km folded iron formation. Grab samples from the property’s main showing yielded gold values of up to 0.25 oz. gold per ton.

Finding a sister deposit to the giant Sullivan lead-zinc-silver near Kimberly, B.C., has been the dream of numerous companies throughout the years.

Ascot Resources (VSE) recently completed a 1,000-metre, 5-hole program at the Vulcan property about 25 km northwest of the Sullivan mine. The Vulcan property is owned by Cominco (TSE) and Ascot has an option to earn a 60% interest by spending $1 million over three years. The drilling tested a strata-controlled sulphide zone on the Lower-Middle Aldridge Formation contact at depths of 50-300 metres below surface.

The holes encountered elevated base metal and silver values on the contact with the best intersection cutting 2.5 metres grading 0.8% combined lead-zinc. The objectives of the drilling program were to define the distribution of base metal sulphides as well as define the sub-basin host in order to locate deeper drill targets.

Robert Evans, secretary of Ascot, expects the company to drill the targets next spring.

Assay results were released by Westmin Resources (TSE) for hole 14-720 drilled on the Gap zone at the company’s Myra Falls mine property near Campbell River, B.C.

In early October, Westmin reported that the hole encountered 15.3 metres (50.19 ft.) of mineralization visually estimated to grade 2.5% copper and 22% zinc. Visible gold was also noted in the core (T.N.M., Oct. 14/91). The hole returned 3.5 grams (0.1 oz.) gold and 119.6 grams (3.49 oz.) silver per tonne, 1.65% copper, 2.92% lead and 22.81% zinc.

Shareholders of MVP Capital (TSE), which through a wholly owned subsidiary is the controlling shareholder of Valdez Gold (ASE), recently approved the creation of class A preferred shares, the company says.

MVP may now offer (subject to regulatory approval) all of the holders of its 5.75% secured convertible Swiss bonds in exchange of each Swiss franc 5,000 principal amount of bonds for a cash payment and one preferred share. If all of the bondholders accept the offer, MVP will issue 2,658 preferred shares which are convertible into more than 67 million common shares.