Tashogan Minerals, a private company based in Willowdale, Ont., intends to merge with vse- listed Collins Resources, in part, to help finance work on a promising piece of ground in the Beardmore area of northwestern Ontario. Tashogan can earn a 50% interest in a 103-claim property in the area from Canamax Resources Inc. and Bruneau Mining Corp., according to Tashogan president and mine engineer James Wade.
The property has geological reserves of 212,000 tons averaging 0.21 oz gold per ton over a width of 10.8 ft and to a depth of 970 ft.
Tashogan must pay $10,000 and spend $1.5 million on exploration over the next three years. To earn an additional 20% Tashogan must spend an additional $1 million and make payments of $500,000.
The company has also optioned a 4-claim group immediately to the south. An old 300-ft shaft exists on this property and 1,400 ft of development work on three levels was completed by previous property owners.
This early work indicated a 120-ft-long zone on the first level grading 0.36 oz over a 7.5-ft width.
The planned merger between Tashogan and Collins would result in two shares of Collins being exchanged for one share of the new company and Tashogan shares being exchanged on a one-for-one basis.
Collins Resources has 1,417,250 shares outstanding, trading in Vancouver recently at about 37 cents a share.
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