Belmoral, Vedron discuss merger

The boards of directors of Belmoral Mines and Vedron Ltd. are exploring the possibilities of a merger of the two gold mining companies.

Belmoral currently has a 39% interest in Vedron and, under an existing exploration and share- purchase agreement, can increase its interest to 45%. The two firms are involved in a joint venture gold project near Timmins, Ont.

At the Timmins-area site, Belmoral’s vice-president mining (Ontario), Koos Schippers, tells The Northern Miner that the ramp has almost reached the third sub-level (400 ft). Drilling is currently under way above the first sub-level (150 ft).

Plans call for the ramp to be completed to a fourth sub-level (500-ft) by the end of August.

Also planned is a 5,000-ton bulk sample which Mr Schippers said may be sent, depending on scheduling, to Belmoral’s Val d’Or, Que., mill for processing later this year.

Meanwhile, the first shipment of ore from the Whitney property open pit gold operation in Timmins was forwarded to the Val d’Or mill last week. The property belongs to Broulan Resources; Belmoral has agreed to incur the cost of developing and mining the project. After Belmoral recovers its costs, the two firms will share profits equally.

Belmoral and Broulan are also participating in a $14.4-million underground exploration program on the main Reef mine site about two miles west of the Whitney project. Mr Schippers said the existing shaft, 2,500 ft deep, has been dewatered to about 500 ft and re-timbering is under way. The new headframe is about 75% complete.