An agreement has been signed between New Sabina Resources and Orcana Resources whereby Orcana may earn a 50% interest in the former’s Cook property in MacMurchy Twp., located 18 miles west of Gowganda in northern Ontario.
Orcana will pay $6,000 on signing and commit itself to spending $300,000 on exploration work this year to earn its share. Once Orcana has earned its 50% interest, the two companies will fund exploration and development activities on a 50/50 basis.
The agreement also calls for both companies to spend a further $200,000 in 1987. Orcana will be the operator.
The Cook property consists of a mineralized quartz-carbonate horizon up to 50 ft in width. The zone was tested by a limited diamond drill program in the early 1950s over a strike length of 1,000 ft. The gold- bearing horizon is open along strike and at depth, Orcana reports.
A program consisting of geological mapping and an i.p. survey is scheduled to begin this month. A diamond drill program is planned for mid-July.
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