Freewest in position to fund Noranda bet

A flow-through financing agreement with CMP 1990 Resources and Co. has put Freewest Resources (ME) in a position to fund its share of a 100,000-ft. drill program at its 40% owned Harker Holloway gold bet. Now regarded as a development project by Noranda (TSE), which holds the remaining 60%, the Freewest claims are estimated to contain as much as 2.5 million tons of grade 0.20 oz. gold per ton.

But according to Freewest President Mackenzie Watson, infill drilling and base line studies scheduled to be conducted on the property over the next five to seven months will offer more information on its potential.

Although Freewest’s share price has dropped to about $1.75, CMP is providing $1 million in flow- through financing while taking up shares at $3 each.

Under an agreement, funds must be spent before Feb. 1, 1991.

Operator Noranda, using three rigs, is drilling infill holes at 160-ft. centres. A fourth drill is testing the downdip and down-plunge extension of a gold zone that lies at a depth of about 1,500 ft. below surface.

It is expected the drilling will take five to seven months, depending on the number of drills utilized, Watson told The Northern Miner. Base line studies and metallurgical test work are also under way.