Total Energold options Tarzan-Glen Auden claims

A total of 522 claims are involved in three separate option agreements which will see Total Energold spend more than $1.25 million on exploration over the next four years to earn a 50% interest in the properties.

The optioned claims straddle the Quebec-Ontario border about 10 miles south of the producing Golden Pond gold mine owned by Inco Ltd. (TSE) and Golden Knight Resources (TSE).

The first option agreement covers a 274-claim property held 50/50 by Tarzan Gold (ASE) and Glen Auden Resources (TSE). Total Energold can earn a 50% interest by spending $600,000 and making cash payments totalling $112,000. An additional 20% interest can be earned by spending a further $366,667 on exploration.

Another 101 claim property, held jointly by Glen Auden (25%), Tarzan (50%) and Goldrock Resources (25%), a private company, is also being optioned. Total Energold can earn a 50% interest in that property by spending $250,000 and making cash payments of $45,000. Additional expenditures totalling $133,334 will earn the company a further 20-32% interest during the 4-year term of the option.

A third agreement with Tarzan and Golden Dragon Resources (VSE) involves 147 claims which adjoin the other properties. Under terms of the latter agreement, Total Energold can earn a 50% interest through cash payments of $84,000 and exploration expenditures of $400,000 over four years. That interest may be increased to 70% by expenditure of a further $250,000 on exploration.

To date, exploration work on the package of claims has included partial coverage by a Questor INPUT survey, ground geophysics, overburden drill ing and four diamond drill holes.

One of the holes, which tested a conductor, cut 62 ft of 70% pyrite within a zone of intense carbonate- sericite alteration. In 1988, a 16- hole overburden drilling program returned up to 100 gold grains from individual holes over a strike length of 1.8 miles following a major fault structure.

Total Energold’s exploration work will focus on four target areas outlined from earlier work. The company plans to carry out 70 miles of line cutting for geophysical surveys, and a drill program is scheduled for early next year.

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