EXPLORATION ’87 MUSCOCHO

Although budgets for some programs are still in the discussion stage, the 1987 planning for companies lying within the Muscocho Explorations umbrella calls for exploration outlays totalling about $33 million, including commitments from companies participating in joint ventures operated by the Muscocho Group.

Muscocho President J. T. Flanagan says this is an all-time high for the group, with Muscocho Explorations, flagship of the group, carrying the lion’s share.

Muscocho is planning just over $2 million for exploration in the vicinity of its Montauban gold-silver mine in Quebec, essentially on an ore-hunt in the geological environment which hosts the currently-known orebodies. It also has large commitments at two prospective gold mines. At the Magino project, in the Goudreau area of Ontario, shared 50-50 with McNellen Resources, a preliminary estimate calls for exploration outlays of $7 million for surface and underground drilling and drifting. A relatively early production decision is hoped for.

At the Magnacon project, about 50 miles southeast of Hemlo, Muscocho is picking up 25% of the $10.6-million exploration budget. Flanagan McAdam Resources, another group member, picks up 50%, while joint- venture partner Windarra Minerals is in for 25%. Again, an advanced exploration program is expected to lead to a production decision later this year.

Muscocho is also committed to a mix of primary exploration in various areas. The biggest is the Gwillam Lake project, in the Chibougamau area of Quebec, where $763,000 is budgeted for geophysics and drilling. Muscocho and Flanagan McAdam are equal joint-venture partners on this, while Noranda Exploration has a 20% carried net profit interest and is backing-in for an additional 13% participation.

Flanagan McAdam, in addition to its substantial joint-venture participations, plans some exploration on its own in the Chibougamau area at a cost of $100,000.

Tashota-Nipigon Mines has sizeable commitments in two projects involving former gold producers. At the Spud Valley mine, in the Zeballos area of B.C., it will contribute 25% of a total $1-million commitment and at the McWatters mine, in the Noranda- Cadillac area, it will contribute 25% to a $5.5-million program involving surface and underground drilling and an underground exploration program.

Chesbar Resources, the fourth unit of the Muscocho Group, will make its main effort in Chester Twp. in the Three Duck Lake area of Ontario, where it can earn 60% in the Murgold property through expenditures of $2 million. The proposed budget calls for expenditures of $5.32 million for a major surface drilling program (110,000 ft) plus underground drifting, sampling and drilling. Chesbar will aso be active in the Harker- Holloway area and at Casa Berardi.