A deal has been signed between associated companies Power Explorations and Van Horne Gold Exploration. Power has the right to earn a 50% interest in Van Horne’s gold property five miles south of Dryden, Ont., by spending $1 million on exploration.
After spending a total of $2 million within four years, Power can increase its interest to 90%. Van Horne retains an option to buy back a 50% interest.
Drilling by Van Horne produced some good results, including a 24.6-ft section grading 0.26 oz gold per ton from the Kidd zone. Included was a higher grading 8.4-ft section which assayed 0.71 oz gold. Limited gold production came from two small mines on the property known as the Bonanza and the Redeemer.
Underground workings on the Kidd zone, which were developed by previous operators, will be dewatered later in the year, Power says. The possibility of deepening the shaft will also be considered. Surface work, expected to start immediately, includes drilling and geophysical surveying.
Power is well financed, following a public offering of both common and flow-through shares which raised $4.7 million. A proposed merger between Power and Van Horne, which was hindered by legal and regulatory delays, has been deferred.
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