Canaustra Gold Exploration (VSE) has agreed to allow a private Newfoundland company, Eastern Minerals, earn a 50% interest in the Flatwater Pond property, located on the Baie Verte Peninsula of Newfoundland.
Canaustra obtained some interesting gold values from soil samples on the property and plans to do additional trenching, sampling and mapping this year. The values, which range from 60 to 900 parts per billion, indicate a significant bedrock source in the area, according to Canaustra.
Eastern, which plans to go public this fall through a Newfoundland Stock Savings Plan issue, will put up $500,000 for the 50% interest. Diamond drilling is planned for early 1989.
Canaustra expects to turn a profit next year from gold production at the Olinghouse mine in Greenhill, Nev. in which the company holds a 50% interest.
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