Report from Calgary Cash flow down for Comaplex

Comaplex Resources International reports reductions in sales, cash flow and net profits for the first nine months of 1986 compared with the same period in 1985. Although revenue from the minerals division was up, this was more than offset by lower oil prices and the reduced demand for natural gas.

Activities of the oil and gas division have been directed toward waterflood programs in the Viewfield and Midale areas of southeastern Saskatchewan. Mineral exploration efforts have been concentrated in three major areas: the Kim property at Indin Lake and Baker Lake in the Northwest Territories and Tower Lake, Sask.

Comaplex has an 18% working interest in the Kim property which is being explored by Echo Bay Mines. Activities this year have been concentrated on the Cass zone which has been traced over a length of 980 ft to a minimum depth of 230 ft with a true width averaging 16 ft.

Higher grade gold concentrations in the Cass appear to be confined to a series of en echelon, subparallel shoots. A total of 21 of the 27 holes drilled to date have encountered visible gold. A 6,400-ft diamond drill program is designed to test the Cass along strike at vertical levels of 100, 200 and 300 ft. In the new year, the zone will be evaluated at the 500- and 700-ft levels by a further 15,600 ft of drilling. An underground decline program planned for 1987 will be contingent upon drill results.

Two projects in the Baker Lake area are in the early stages. Reconaissance prospecting on the 502,000-acre Baker property has located six new gold occurrences along two subparallel trends, each up to 14 miles in length. Comaplex has a 20% carried interest in this project to the expenditure of $7.75 million.

The company has a 50% working interest in the Parker project which has been subjected to reconnaissance prospecting. Several gold occurrences have also been located in this area.

The Tower Lake gold property in northern Saskatchewan is being explored by Golden Rule Resources. Comaplex has a 5% working interest and a net smelter royalty in the property. An extensive drilling program in 1986 resulted in a meaningful increase in the previously- known open pit mineral inventory.

The annual report of Golden Star Resources anticipates for 1987 the dream of all mining companies, namely putting a property into production. In accordance with a full feasibility study, completed by SNC Inc., the company is preparing to proceed with construction of the production facility on its Omai gold deposit in north-central Guyana, South America.

An initial production rate of 40,000 oz of gold per year is expected with production costs in the order of $150 per oz. Cost of construction is budgetted at $10 million.

The potential for the expansion of the facilities to produce an additional 200,000 oz per year is being studied.

Gold mineralization in the primary zone occurs in a hydrothermally-altered granitic stock. Based on drill and bulk sample data gathered by Anaconda (BG) in the late 1940s, indicated and inferred reserves of approximately 27 million tonnes grading 0.043 oz exist.

Overlying the primary zone is the weathered zone, consisting of saprolite and alluvial horizons. This year’s feasibility study of the weathered zone adjacent to the Omai stock intrusive outlines an aggregate indicated and inferred reserves of 12.2 million tonnes grading 0.048 oz.

The company also holds four other exclusive permission precious metal properties in Guyana. Exploration programs this year have identified a number of gold-bearing deposits and geochemically-anomalous areas.

The winter program of shaft rehabilitation and diamond drilling is continuin g on the northern Manitoba Island Lake property of Bighorn Development Corp.

The shaft has been recollared, a headframe erected and the upper 125 ft of the shaft has been restored. Restoration will continue to the 225-ft level, where the original drift will be extended to obtain a bulk sample.

A total of 3,496 ft of diamond drilling has been completed in four holes. Drilling is continuing on a fifth hole. Additional holes are planned to prove continuity of the surface exposure of the Main vein.

Silvera Resources announces ongoing exploration programs on two properties. A drilling program on the Anton property in B.C. started in November with 10 to 12 holes planned before the year-end. Drill targets are based on geochemical and geophysical anomalies in the Shannon Lake grid.

On the Wapiyao Lake property in Saskatchewan, an extensive geophysical program is being run over a mineralized zone that has yielded gold assays ranging from 0.017 oz gold per ton to 1.85 oz from surface sampling. Drilling on the property is planned for January.