After being almost forgotten for some time, Placer Development’s 100%-owned Eastmain property may be getting the shot in the arm it needs with funding for exploration and development from Massval Resources (N.M., Sept 29 /86).
The property, located about 185 miles northeast of Chibougamau in northwestern Quebec, has an established orebody with reserves in two zones totaling 1,172,000 million tons grading 0.32 oz gold per ton. Adding to the excitement over the deal between Placer and Massval are drill results from work done earlier this year including:
Grade Width Hole No. (oz per ton) (ft) 86-11 2.84 11.3 86-14 1.52 13.6 86-15 0.53 12.0 86-18 7.34 7.5
Massval, which is being run by Somicom Management of Montreal, can earn 10% in the first year of the deal for spending $1 million on the property. It can increase that to 49% by spending a further $7 million by the end of 1988.
Massval has already filed a preliminary prospectus in Quebec and planned to have one filed by Oct 8 in Ontario in order to raise $2.85 million to fund its work commitments. It plans to spend $1,122,000 on the property by the end of February, 1987.
That work will include $600,000 on drilling and $100,000 selecting a portal site in preparation for collaring a decline ramp.
Massval plans to change its name to MSV Resources and consolidate its stock on a 3-for-1 basis. Somicom President Stuart Lee says shareholder approval has already been obtained for the restrucuturing.
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