Queries Cornucopia Res. hasn’t changed its name

When I sold 400 shares of Cornucopia Resources recently, I was informed by my broker that this company is now Valley View Gold.

While the shares of Cornucopia are listed in Vancouver and Valley View in Alberta, I have not seen any news of a merger in The Northern Miner, nor have I been informed of any such action by the company.

Could you tell me if there is any connection between the two companies? C.M., Brookfield, Ill.

It appears that your broker has given you the wrong information. It is true that a company called Cornucopia Mines Ltd., which was incorporated in 1977 in Utah, changed its name to Valley View Gold Mines in August 1987.

But Vancouver-listed Cornucopia Resources hasn’t undergone any name changes since it was incorporated in British Columbia back in 1982. In fact Cornucopia Resources is one of Vancouver’s most active junior exploration plays.

Led by Chairman Andrew Milligan, the company is currently involved in a joint venture with Galactic Resources at the 100,000- acre Ivanhoe property in Nevada’s Carlin gold trend.

With 27 million tons grading 0.041 oz gold per ton of open pitable reserves contained in the huge Hollister deposit, the joint venture partners are currently attempting to determine the full extent of the orebody before starting production later this year.

Cornucopia recently signed an agreement with Toronto-listed Hayes Resources allowing Hayes to earn a 50% interest, by spending $500,000(US) within 12 months, in approximately 8,000 acres at the southernmost portion of the Ivanhoe property.

Lease Agreement

As a result of a new lease agreement, Cornucopia is the 50% owner of the Red Mountain gold deposit in Colorado where open pit reserves stand at 12.4 million tons averaging 0.027 oz gold and 0.790 oz silver.

With production expected this year, an engineering study states that operating costs will average approximately $203(US) per oz of gold equivalent recovered during the first seven years of the mine’s life.

However, Cornucopia says it has had offers for its interest in Red Mountain and they are apparently being given consideration.

Cornucopia’s other interests include a 50% working interest in a large platinum-nickel-copper- cobalt property at Yakobi Island in southeastern Alaska. It is described by the U.S. Bureau of Mines as one of the few known proven reserves of sulphide nickel mineralization in the United States.

The company also has a 50% interest in a partnership which owns two exploration gold properties in Nevada called the Clove and South Monitor.

Meanwhile, Valley View Gold Mines is involved in a joint venture with East West Resources to develop the Clementine mine northwest of Pheonix, Ariz.

As reported (N.M., Oct 19/87), East West is earning a 50% interest by spending $250,000 to bring the property to a commercial production stage. Previous work established open pit reserves of about 500,000 tons at grades up to 0.10 oz.