Montreal-based MSV Resources (MSV-T) is entering into an option agreement with Toronto-based Sikaman Gold Resources (SKG-T) for a 50% interest in MSV’s Corner Bay copper project, situated 56 km south of Chibougamau, Que.
The project’s first phase involves excavating an exploration ramp and taking a 17,000-Ton bulk sample from the deposit, where resources now stand at 812,000 tons grading 4.5% copper.
While MSV will contribute its personnel to the joint-Venture project, Sikaman will provide a maximum investment of $3 million.
In an attempt to preserve jobs in the area, Quebec’s Department of Natural Resources will provide a subsidy of up to $1.5 million for the first phase of the project. For the second phase, the government will grant an additional $750,000 to construct power lines, as well as $240,000 in mining rights credits.
MSV reported earnings of $1.1 million (or 3 cents per share) on revenue of $10.9 million for the first quarter, compared with a loss of $250,000 (3 cents per share) on $9.2 million for the same period in 1996.
For the recent 3-Month period, the company produced 2.8 million lb. of copper and sold it for an average price of US$1.49 per lb. — figures which were little-Changed from those recorded in the first quarter of 1996.
Gold production rose to 9,228 oz. from 7,657 oz., and was sold at an average price of US$481, compared with US$550 per oz. a year ago.
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