NEWS ROUNDUP (October 21, 1991)

Because of recent changes in management and the threat of another mail strike, Toronto-based Madeleine Mines (TSE) has postponed its annual meeting until further notice.

The annual meeting was scheduled to be held in Montreal Oct. 16. But after the price of Madeleine shares fell below $3 recently, President Patrick Sheridan was forced to sell his controlling interest to Kaiser-Francis Oil of Oklahoma. The Oklahoma company now owns about 32% of Madeleine’s 8.8 million issued shares.

A Madeleine spokesman said she expects a new date for the annual meeting to be announced following discussions between former management and the new board of directors.

Membership of the International Council on Metals and the Environment has grown to 20 from 13 since the council was created earlier this year, with representation from all continents, the group reported from London.

Council Chairman Keith Hendrick, who is also chairman of Noranda Minerals, said his group continues to encourage further membership, in particular from the Soviet Union and developing countries.

The group’s mandate is to promote sound environmental policies and practices in all aspects of the industry. Planned is an environmental stewardship program to guide the industry.

An option agreement covering the Fenton and Gradis properties in northwestern Quebec has been signed with the Societe de Developpement de la Baie James, Cache Explorations (ME) reports.

The properties were the subject of a tender from the Societe last February. Under the agreement, which is subject to regulatory approval, 187 claims have been added to the nine claims owned by Cache in Guercheville Twp. to form the Fenton project (between Chibougamau and Desmaraisville).

Cache may earn a 100% interest in the two properties by providing $700,000 in exploration funding during a 3-year period, issuing 200,000 shares to the Societe and making a lump sum payment (already executed) of $25,000.

Under a recent agreement with Chevron Minerals, a unit of Chevron Corp., Athabaska Gold Resources (VSE) will increase its interest in the Nicholas Lake gold project, 90 km north of Yellowknife, N.W.T., to 100%. For the purchase price of $300,000 plus any funds contributed by Chevron to the current exploration program, Athabaska will acquire Chevron’s 40% interest in Nicholas Lake plus Chevron’s right to earn up to 55% at final feasibility.

Athabaska currently holds a 60% interest in the project.

“Management considers the term of the offer to be very favorable to shareholders and is currently negotiating financing for this purpose,” Athabaska said in a press release. The deal will give Chevron a 1% net smelter royalty on the property.

More than 50,000 ft. of drilling has identified a preliminary reserve of 946,000 tons grading 0.46 oz. gold per ton at Nicholas Lake. The current $800,000 exploration program, financed by Royal Oak Mines (TSE), is designed to test other mineralized zones. To earn a 33% interest in the property, Royal Oak is spending at least $855,000 on exploration. Royal Oak also has the right to first refusal on future financings by Athabaska.

Kingswood Explorations (ASE) has offered to purchase all of the issued and outstanding shares of Fort Rupert Resources, a private company. Under the offer, which is subject to regulatory approval, each Fort Rupert shareholder would be given one share of Kingswood for 2.5 Fort Rupert shares.

Fort Rupert has a 50% interest in the Lac Marcaut property, about 125 miles north of Matagami, Que. Grab samples taken from an exhalite horizon exposed along a strike length of 260 ft. on the 101-claim property returned assays as high as 3.74 oz. gold and 5 oz. silver per ton.

Teck (TSE) can earn a 70% interest in the property from Fancamp Resources (VSE) and Fort Rupert by spending $2.5 million over six years and making cash payments totalling $300,000.

Fort Rupert also has 51 claims surrounding Inco’s (TSE) Horden Lake deposit, 125 miles southwest, which contains reserves of 5 million tons grading 1.47% copper, 0.4% nickel and 0.02 oz. gold per ton.

The private company has about 3.5 million shares outstanding.