Santa Fe returns to Springpole

Santa Fe Canadian Mining, a subsidiary of Newmont Gold (NGC-N) has climbed back aboard the Springpole gold project of Gold Canyon Resources (GCU-V) after having dropped its original option in 1996.

Santa Fe has agreed to fund a summer work program on the property, situated near Red Lake, Ont., on the condition that Gold Canyon forego a lawsuit it launched against the company in a British Columbia court in October 1997.

Gold Canyon alleged Santa Fe breached the original Springpole agreement, and was seeking unspecified damages.

Under terms of the original deal, Santa Fe could have earned up to a 50% interest in the property. According to the latest agreement, Santa Fe will hold the right of first refusal for up to a 70% interest for one year.

Mineralized intercepts from a February drill program at the project include 122.6 ft. grading 0.14 oz. gold per ton, including 28 ft. of 0.2 oz., 32 ft of 0.1 oz. and 31.6 ft. of 0.22 oz. on the Hillside zone, and 15 ft. grading 0.27 oz., 8.5 ft. of 1.54 oz. and 3.6 ft. of 0.26 oz. on the East Extension zone.