Glimmer Resources plans more drilling on Barnet Twp. bet (December 12, 1988)

NSR Resources (TSE) has signed a letter of intent with Master Gold, a private company, which gives Master the right to earn an interest in three of five concessions held by NSR in Rouyn Twp., Que.

Master can earn a 50% interest in the concessions by spending $1.2 million on exploration before Feb 28, 1990. The company plans to raise an initial $600,000 via a public offering. A preliminary prospectus has been filed.

NSR, which will remain the project operator, will also retain a 3% net smelter royalty if the property is placed in production.

The claims include the site of the former producing New Senator Rouyn gold mine which operated from 1940-1955. During that period, the mine produced 240,000 oz of gold from rock averaging 0.13 oz gold per ton.

According to NSR, reserves remaining in stopes total 200,000 tons grading 0.13 oz gold. The main zone is also open below a depth of 2,700 ft.

A letter of intent has been signed between Master Gold Inc. and Glimmer Resources (VSE) to carry out more diamond drilling on the latter’s 132-claim property in Barnet Twp., east of Matheson, Ont.

The letter of intent, subject ot regulatory approval, will be followed by a formal farm-in agreement entitling Master Gold to earn a 51% interest in the property by funding $1.1 million of exploration prior to Feb 28, 1990.

Glimmer, designated the operator of the joint venture, will spend about $400,000 on the Barnet Twp., property by Feb 28, 1989.

Previous drilling on the property by Canamax Resources (TSE) intersected values up to 0.19 oz and 0.15 oz gold per ton across 6.6 ft intervals. Following the completion of a $450,000 program, which included 17 diamond drill holes, Canamax recently returned the property to Glimmer.

In a separate letter of intent, Glimmer recently agreed to option its Beatty/Hislop Twp., 13-claim property to Noranda Exploration.

The deal calls for Noranda, the operator, to spend $250,000 in exploration over three years to earn a 60% interest.

Noranda will also make cash payments totalling $64,000, and has a $1.5 million buy-out privilege.

The Beatty/Hislop property straddles the Destor/Porcupine fault zone and adjoins property where underground work is currently on-going by Goldpost Resources (TSE).

Glimmer reports about $275,000 in working capital and no debt.