Property may be next gold mine.

Final approval for advanced exploration expected in November

Davidson Tisdale Ltd. (DTL), a Waterloo, Ont.-based mining exploration company, is set to begin advanced exploration and drilling on a 1,440 acre piece of property the company's president says could yield Timmins' newest gold mine.

The property is located in the Timmins-Porcupine mining camp in the northeast corner of Tisdale Township, 12 kilometres northeast of Timmins.

DTL initially acquired the rights to the property in 1945 and currently owns a full interest despite various joint venture agreements over the years.

DTL was poised to begin operation of the mine in partnership with Getty Metals Canada Ltd. in 1987.

Getty had spent roughly $20 million on exploration and start up costs which included building an access road, a 200-metre shaft and adjoining ramp for support vehicles.

However, Texaco Inc. acquired the mine as part of a larger deal.

Texaco had little interest in mining and the operation was cancelled.

Robert Norcott, DTL president and chief executive officer, says resources at the new mine site are estimated to be 200,000 to 360,000 ounces of gold at grades of 0.18 to 0.48 grams per ton.

Toronto-based IBK Capital Corp. has been retained by DTL to raise $3-million in financing for advanced exploration, sampling, drilling and permit costs.

Norcott expects to receive final approval of its advanced exploration plan in mid-November.

In the meantime, the company continues to conduct surface drilling.

DTL has signed a letter of intent with Timmins-based Dumas Mining Contracting Ltd. To evaluate and dewater the mine site as soon as final approval is received.

Once the mine has been dewatered, DTL will sample at depth to define the shape and extent of the ore body. The plan includes a 50,000-ton bulk sample.

If grades are proved, Norcott says the mine could produce "700 to 750 tons per day," and create between 150 and 200 new jobs.

Norcott says he is excited about the economic potential of the mine site, adding he would like to see DTL bring the mine to production on its own. However, he says .in the mining exploration business it pays to keep all options open.

"We're excited about what we have. But we are open-minded business people. If the proper offer arises we're not closing any doors. That said, our main goal remains establishing something ourselves."

DTL is publicly traded on the Canadian Venture Exchange under the stock symbol YDD.