A joint-venture agreement has been signed by Greenstone Resources and Syngold Exploration giving Syngold the right to earn a 50% interest in two of the former’s Chibougamau, Que., properties.
Under the agreement, Syngold will earn its interest by paying Greenstone $300,000 at closing and spending $2 million on exploration on the two properties during a 3-year period. The agreement is subject to regulatory approval.
The properties are the Scott Lake and Obalski blocks comprising 179 claims and one mining concession covering 9,224 acres. The Scott Lake property is located nine miles southwest of Chibougamau, while Obalski is situated three miles south of the town.
The Scott Lake property has probable and possible reserves of 700,000 tons grading 0.55% copper, 6.9% zinc and 0.45 oz silver per ton, Greenstone reports. The property, which is also believed to contain recoverable amounts of gold, has about 17,000 ft of the favorable Gwillim Lake fault zone which hosts the nearby Gwillim Gold mine. Greenstone consultants believe the geological environment is similar to that of the Lemoine mine, an ex-producer of gold, silver, zinc and copper.
The Obalski property is a small former gold producer which straddles the Lac Dore fault. Camchib Mines formerly worked the property. Greenstone reports the property has a number of other gold- bearing veins as well as some excellent drill targets, identified by earlier work, which have not yet been drilled.
An exploration program is expected to begin this month with Syngold as operator.
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