Second joint venture for San Paulo- Teck (Head – 18 bold)

San Paulo Explorations, which recently entered into a joint venture agreement with Teck Corp. to finance a sizeable exploration program to earn a 50% interest in the latter’s Leitch mine property at Beardmore (N.M., July 13/87), has now taken an option on Teck’s 41-claim gold property in the Lower Manitou Lake area south of Dryden, Ont. Under the terms of this latest agreement, San Paulo must spend $1 mi llion to earn a 50% interest, of which $275,000 is a firm commitment to be spent in the first year. In addition, San Paulo must pay Teck $30,000 cash on signing. Again, Teck will be the operator.

Known as the Gafffney property, previous geophysical work and some 3,000 m of diamond drilling traced a zone containing an erratic network of gold-bearing pyritiferous quartz for a length of 400 m. The best intersection assayed 0.157 oz gold over 20.5 m while the deepest intersection was 0.148 oz over 9.5 m at a vertical depth of 215 m. An early follow-up drill program is planned.

As recently reported (N.M., Nov 16/87), San Paulo has optioned one of two gold properties it holds in the Mishibishu Lake area to Noranda Exploration.