The reverse takeover of Newhawk Gold Mines by Lacana Mining Corp. has been approved by Newhawk shareholders. The deal will see Newhawk acquire Lacana’s 30% interest in the Sulphurets gold project in B.C. for four million Newhawk shares. That share issue gives effective control of Newhawk to Lacana. Newhawk in return will hold a 60% interest in the project.
A 15,000-ft underground drilling program will begin once a decline ramp is completed. The ramp has advanced by 514 ft. The underground work is part of a $5-million exploration effort which is examining the deposit. Reserves total 1.6 million tons grading 0.34 oz gold per ton and 22.9 oz silver per ton in three zones. Granduc Mines holds the remaining 40% interest in the project.
Surface drill results from the West zone include Hole 198 which cut 18.6 ft grading 1 oz gold per ton and 2 oz silver. Hole 217 was also very strong, intersecting 10.9 ft grading 6.3 oz gold per ton and 2.8 oz silver. The current drill program is scheduled for completion in February, 1988. At the end of the program, Newhawk feels that sufficient data will be available for the partners to proceed to the feasibility stage.
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