Former LAC trio get second chance with Perrex

Dennis Sheehan and Robert Valliant, both former vice-presidents of exploration for LAC, and Ian Hamilton, LAC’s former general counsel, are teaming up with Kirkland Lake, Ont., prospector Alexander Perron in a bid to form a new company.

The former LAC team will provide the exploration, property management, and acquisition skills whereas Perron is bringing three junior companies with a large property portfolio to the table.

“We expect the new company to be formed by June,” Ian Hamilton explained to The Northern Miner. The new entity will result from the amalgamation of three Perron-controlled companies, Perrex Resources (ASE), Alberta Gold Exploration (ASE) and Gwen Resources (ASE).

A financing will be sought after the merger. Also, Perrex has arranged $1 million in flow-through financing.

“Our objective is to put a property into production. We want to build a senior, significant mining company,” Valliant explained. “We plan to explore the ground that we’ve got and to look for advanced stage acquisitions.”

A priority area is the Harker- Holloway region east of Matheson, Ont. Perrex controls a land package extending across four townships and consisting of varying interests in more than 400 claims.

Within the Harker camp, Perrex’s top priorities include the Iris and Ghost River projects; the latter being held under option by LAC Minerals (TSE).

On the Iris property in Harker and Elliot twps., drilling completed in 1988 outlined a near surface mineral inventory of 1.2 million tons grading 0.06 oz gold per ton. Significant tungsten mineralization has also been identified which could add value to a future open pit mining operation, Perrex says.

Drilling completed by LAC this winter on the Ghost River project has returned assays up to 1.06 oz gold across 5 ft and 0.65 oz gold in a 20-ft intersection.

The Perron group of companies also hold interests in properties in the Yukon, the N.W.T., and other parts of Ontario and Quebec. The group also has some oil and gas production from three wells near Pinoco, Alta. The wells produce at a rate of 75 bbl per day, Hamilton said.

Adding value to this property base will fall on the shoulders of Sheehan and Valliant. Both are credited with a brilliant string of exploration successes while at LAC.

In the mid-1970s, Sheehan correctly recognized the gold potential of the Bousquet property near Malartic, Que. The Bousquet mine, which emerged from that prospect, today produces more than 85,000 oz of gold per year for LAC. Valliant joined the LAC organization after completing a thesis on the geology of the Bousquet deposit. At the same time, a gold discovery by Soquem on the Doyon prospect, immediately west of the Bousquet deposit, prompted Sheehan to recommend a takeover of little known junior Silverstack Resources. Silverstack held a 50% stake in the property which became the Doyon gold mine — Quebec’s largest.

Recognizing similarities between the geology at the Bousquet mine and that being mapped at Hemlo, Ont., in 1981, Sheehan accurately assessed the value of the Hemlo area and moved quickly to acquire the claims which ultimately hosted the rich Page-Williams gold mine. Ownership of the mine is currently before the Supreme Court of Canada.

Hamilton, as LAC’s former senior vice-president and general counsel, provided LAC with the ability to move quickly in negotiating and closing deals. Together, this triumvirate hopes to match its past success.

“Success in exploration is really not that hard,” Valliant adds casually. “Once you’ve done it and developed the skills, it can happen again.” Following the merger of the three companies, the former LAC executives plan to become full time equity holding officers of the new company, Hamilton adds.

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