Vancouver-based Granges (TSE) is evaluating several gold showings at a former copper producer in the Baie Verte region of Newfoundland, having optioned the property from Terragold Resources (ASE).
Under the agreement, Granges is required to spend $66,000 on exploration at Terragold’s Little Bay property before June 30 to have the right to earn a 50% stake in the property. Granges can earn its interest by spending an additional $209,000 before December, 1992.
Granges can increase its stake in Little Bay to 70% by spending $11,000 for each additional 1% interest earned. Terragold says the option must be fully exercised before Sept. 1, 1993.
The 25-claim Little Bay property, on Newfoundland’s northern coastline, includes the past producing Little Bay Copper mine where about 2.8 million tons of copper ore grading 1% copper was extracted and processed. Of that amount, 350,000 tons yielded 7,000 oz. gold.
About four miles further west, Terragold is earning a 50% interest in Noranda Minerals’ Pine Pond gold project where some narrow veins containing high-grade gold values have been discovered.
However, according to Terragold, it isn’t yet known whether any of the gold showings reported on the property are attractive enough to justify diamond drilling. Assays from samples taken by Noranda range as high as two ounces gold per ton, says Terragold.
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