Reactivated Pamax options Noranda gold properties

Northwestern Ontario will be the focus of an exploration drive by reactivated Pamax Resources (COATS) as it earns an interest in two gold properties in the area. The Rice Bay property, consisting of 260 claims on Birch Lake, lies 110 km northeast of Red Lake. By paying Noranda (TSE), the current property owner, $65,625 and spending $750,000 on exploration before Dec. 31, 1993, Pamax will earn a 50% interest in the Rice Bay claims. If a production decision is made, Noranda will have the right to provide senior financing, and Pamax’ interest will drop to 25%.

The Rice Bay claims, which lie along the Swain Lake deformation zone, encompass several structurally controlled gold occurrences in quartz veins and silicified zones. Encouraging drill intersections include an 18.2-metre length grading five grams gold per tonne.

Closer to Dryden Ont., the Manitou property on Manitou Lake consists of 199 non-contiguous claims covering a portion of the Kakagi Lake greenstone belt. Pamax has been granted the right to acquire a 50% interest in the property by spending $1 million on exploration over a 4-year period. If the property reaches production, equal owners Noranda and Golden Trio Minerals (VSE) have the right to provide financing, in which case Pamax’ interest would drop to 25%.

Gold mineralization in the area consists of altered zones containing gold-bearing quartz veins. The Straw Lake Beach mine, a former producer, lies immediately north of the Straw Lake claim group.

Following the reactivation of the company, three of the Pamax’ current directors have resigned and been replaced by Harvey Tremblay, Victor Perry and Louis Soulliere.

Pamax intends to issue 750,000 common shares to Moil Holdings, Pamax’ promoter, which currently owns 500,000 Class B shares and 193,750 promoter’s warrants. The issue is subject to approval by Pamax shareholders and the Ontario Securities Commission.