THE DIAMOND PAGE — Wheaton options Ketza to Hemlo

Junior gold producer Wheaton River Minerals (TSE) has optioned a portion of its Ketza River mine near Ross River, Y.T., to Hemlo Gold Mines (TSE).

Hemlo, which will be the operator, can earn a 60% interest in 252 claims and 49 leases by spending $2 million on exploration and making staged payments to Wheaton totaling $125,000 before Jan. 15, 1998.

Wheaton bought the property, which is subject to a 10% net profit interest royalty held by Canada Tungsten (TSE), from Canamax Resources late last year. The mine was operated by Canamax from 1988 to 1990, during which time it produced more than 100,000 oz. gold. The property has a 350-tonne-per-day mill and a sulphide reserve base of 190,000 tonnes grading 11.3 grams gold per tonne. Neither mill nor known reserves are included in the option with Hemlo.

An exploration target of interest to Hemlo is the Shamrock zone, where a hole drilled in 1987 returned 3.7 grams gold over 105 metres and ended in mineralization. Wheaton believes the zone may be part of a large-tonnage stockwork-type gold deposit.

In other news, Wheaton has completed a private placement of 3.6 million special warrants at $1.40 each to raise $5 million. Each special warrant can be exchanged for one Wheaton share and half a share purchase warrant for no additional consideration. One whole purchase warrant can be redeemed for a Wheaton share at $1.65 on or before Jan. 28, 1995.