Blue Moon project reserves increased

Ore reserves and grade have increased at the Blue Moon project in California, reports Imperial Metals Corp. President Pierre Lebel.

Total probable reserves stand at 2.1 million tons grading 0.060 oz gold, 2.46 oz silver, 1.13% copper, 8.77% zinc per ton. Inferred reserves are 1.02 million tons. These figures are the result of the 1986 drilling program by operator Westmin Resources.

In late September, Imperial optioned the Bonne Terre property in Tuolumne Cty., Calif. Preliminary drilling results indicate confirmation of two parallel mineralized zones. One drill hole returned 0.74% copper, 0.39% lead, 5.5% zinc, 0.96 oz silver and 0.138 oz gold over 8.2 ft.

Mr Lebel also reports that Imperial has reached an agreement with Cominco Ltd. and Teck Corp. whereby Teck has acquired an option to earn 70% in the Iron Mask joint venture near Kamloops, B.C.

This property contains the Ajax orebody, a porphyry copper deposit containing more than 100 million tons grading 0.33% copper and 0.01 oz gold per ton, says Mr Lebel. Under the agreement, Teck must spend $1 million on ore definition and on exercise, will dedicate the Afton mill to exploitation of the Ajax property. The Imperial group will retain a 9% net profit interest in the new joint venture.

Looking at the company’s financial results for its second quarter ended Sept 30, Mr Lebel reports a net income before extraordinary item of $185,000 versus $190,000 in the comparable quarter of 1985.

For the six months, net income before extraordinary item was $58,000, down substantially from $654,000 in the same period last year. A loss of 3 cents per share was posted after the deduction of preferred dividends was incurred during the quarter, compared to earnings of 4.2 cents a year earlier.

Cash at the end of the recent period amounted to $2.1 million, down from $4.1 million at the end of the year-earlier period.