A 25% interest has been earned by Ronrico Explorations (VSE) in the Simkar gold project near Val d’Or, Que.
An agreement between Ronrico and Fonteneau Resources required the former to spend $2 million by April 1 on surface exploration, shaft rehabilitation and underground exploration.
Ronrico reports surface drilling in four areas was completed in February, with gold mineralization intersected in all four areas.
In the east zone, 32 closely- spaced holes, representing 30,666 ft, were drilled. Average width of the zone is 6 ft, with an average grade of 0.35 oz gold per ton. The zone is open along strike and to depth.
Ronrico is continuing work on the second stage of the project and may earn a further 15% interest by spending an additional $2.5 million on underground exploration before April 1, 1989. The company expects the second stage will be completed by the end of May of this year.
Completion of the third stage of the project would earn Ronrico a further 10% interest.
The property, a former gold- producer, has been dewatered to below the third level at 525 ft.
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