Orcana negotiating on gold property

Toronto-based Orcana Resources is negotiating an agreement on a gold property in northern Ontario known to have intercepts of commercial gold values over modest widths, shareholders of the company were told at the annual meeting.

Location of the property was not revealed. President Raymond Mongeau said the agreement is being finalized.

During its last fiscal year ending Oct 31, 1986, Orcana completed an agreement with Esso Minerals to fund exploration work on large tracts of land in Newfoundland, Ontario and Quebec. Orcana is to spend $1.1 million during 1986 and 1987 to earn a 49% undivided interest in the properties. Thereafter, funding is to be provided on a pro rata basis. Esso is the operator.

Golden Shield Resources also signed an agreement with Orcana whereby Golden Shield is to fund Orcana’s financial commitment in return for a 50% direct interest (equal to 24.5%) in Orcana’s property.

Encouraging early results have been reported by Esso on its Chibougamau, Que. claims, where an exploration program consisting of reverse circulation drilling, geological mapping and diamond drilling is under way.

Orcana is planning to do field work this summer on its 51-claim Puiseaux Twp. property in the Casa Berardi area in Quebec.

The company is awaiting completion of a public underwriting of 500,000 shares. It has also entered into an arrangement for a private placement of 500,000 flow-through shares at $1 per share.