After absence from mining, Moneta Porcupine is back

Better known as a small oil and gas explorer during the early 1980s, Moneta Porcupine Mines has returned to the business it began with in 1910 — gold mining and exploration.

Armed with new management and up to $1.5 million, which will come from a private placement of limited partnership units expected to be completed shortly, the company plans to embark on an active exploration and acquisition program.

Thomas R. Vukovich, chairman of Moneta and the main catalyst behind the reactivation of this old company, has accomplished a considerable amoun t in the past six months. This includes establishing an operational office in Timmins, hiring President Charles Gryba, former engineer at Pamour Inc., and Vice-president Francis Yungwirth, who was previously chief engineer with Hudson Bay Mining and Smelting. This was funded by a $600,000 private placement completed in September. The $1.5 million offering will fund exploration work on several properties within the company’s portfolio.

One of the most important is the former producing Moneta Porcupine mine, west of Timmins, Ont. During its operation from 1938- 1943, the mine produced 149,340 oz of gold and 22,045 oz of silver from 314,831 tons of milled ore. An initial program will include 3,000 ft of diamond drilling, designed to test for the near surface strike extension of a known mineralized unit along the western boundary of the property.

A major $500,000 program is also being considered for 1987, which would entail drilling long holes from the 1,700-ft level of the adjacent Hollinger workings, now controlled by Pamour Inc. This, Mr Vukovich says, will require a deal with Pamour.

The private placement will also fund exploration on several other properties located along the Destor Porcupine fault — a major structure in the area which is associated with numerous gold deposits. On the 22-patented Michaud claims 60 miles east of Timmins, a $300,000 program has been proposed. This will include 10,000 ft of drilling.

Seven patented claims near Sioux Lookout, Ont., will also be examined by a modest $80,000 program. In Quebec, the company’s Regcourt property, in Vauquelin Twp., has a mineral inventory of 66,790 tons grading 0.165 oz gold per ton. Drilling will test for extensions of known zones east of a 500-ft shaft on the property.

Three other properties, owned 40% by the company, are located in the Harker-Holloway area, Ont. These are under option to Canamax Resources.

Most importantly, however, to the company’s future, is a plan to complete a major acquisition of a proven gold deposit, Mr Vukovich says. If successfully completed, the deal could cost upwards of $8 million, Mr Vukovich adds.