Accelerated exploration program ready to roll at Lingman Lake

Drilling should begin this winter on a little-known gold deposit in northwestern Ontario held for many years by Twin Gold Mines. Located near the Manitoba border, east of Gods Lake, the property at Lingman Lake has proven reserves of 574,000 tons at 0.36 oz gold per ton but has not seen a drill since the ’40s. Massive Energy of Toronto plans to spend a minimum of $2.5 million this year attempting to prove up a total of one million tons of ore reserves on the property and two properties to the east and west held by Roman Corp. and Kennco Explorations. One million tons is a figure that Massive’s consultants consider will justify a production decision.

Underground work between 1946 and 1948 included a 430-ft shaft, 4,500 ft of drifting, crosscutting and raising and almost 10,000 ft of diamond drilling. Reserves are all above the 400-ft level and have been cut to 1 oz.

In all, Massive could end up spending up to $16.4 million over the next four years to earn a 50% interest in this, and another promising gold property held by Twin Gold at Gods Lake.

Early this month, Massive had an arrangement with Agassiz Resources whereby Agassiz puts up anywhere from $2.1 million to $4.2 million to gain control of the Alberta-listed vendor, Twin Gold Mines, and Massive spends $4 in exploration work for every $1 Agassiz spends in the takeover of Twin. Twin Gold has 1,815,716 shares outstanding.

Directors of Agassiz approved the purchase of Twin Gold shares which was completed on Dec 19.

The issuance of some 750,000 flow-through shares in February, 1988 would bring Massive’s share total over the six million mark. The financing is being arranged by tap Mineral Exploration Management of Toronto.

Massive’s shares trade in Vancouver at about $3.15, but President John Sadowski tells The Northern Miner that they intend to do a $1-million underwriting through a recognized member house simultaneously with an application for a listing on the Toronto Stock Exchange and nasdaq sometime in the new year.

Massive has also raised $300,000 for a drilling program on its Pangis- Batchawana, Borland Lake and Pickle Lake properties.