Noranda options to take over NDU

Encouraging assays have been reported by NDU Resources (VSE) for its wholly-owned Blende lead- zinc-silver-germanium property located in the Yukon.

The company has drilled to a depth of almost 700 ft. Company President James Stephen reports the weighted average grade for the interval between 14 ft and 283 ft is 5.4% lead, 3% zinc and 3.1 oz silver per ton. The germanium assays are awaiting completion.

The hole, the company says, is part of a 3-hole fan (2,355 ft) drilled from a single site near the top of a steep, rugged mountainside and is the first drilling performed on the deposit. Assays from the other two holes are awaited.

The Blende property, enlarged from 15 to 66 claims, is located 36 miles northeast of Keno Hill and 27 miles by air from the nearest all-weather road. The property lies 6 miles from the Wind River winter road.

In other news, NDU and Noranda Inc. (TSE) have entered into an agreement for further exploration of the Marg property located east of Mayo, Yukon.

Noranda has agreed to subscribe for 300,000 NDU shares at $3 per share and has been granted options to purchase up to 51% of the company’s issued stock at varying prices (up to $12.50 per share) by May 1, 1991. The proceeds will be used for work at the Marg property.

Should Noranda exercise its first option to purchase another 300,000 NDU shares at $4.50 per share by Nov 30, 1988, NDU has agreed to transfer all NDU assets, except the Marg property, to a new company. Shareholders of NDU would receive one-half share in the new company for each existing share of NDU. The deal is subject to shareholder and regulatory approval.