Acquisition hungry Granges takes position in Curator

Acquisition hungry Granges Exploration has taken an equity position in International Curator Resources which could lead to full control within a year. The latter has a number of impressive gold properties including the Jualin near Juneau, Alaska. Granges has already purchased 1.3 million units at $1 each which include non transferable warrants exercisable in a year at $1.30. In addition, Canorex International has agreed to sell its control position of 1.6 million shares if Granges exercises the warrants. That would give Granges a 50.1% equity interest on a fully diluted basis, says Curator President M. D. McInnis. Granges appears to be following a style perfected by Teck Corp. which gets a toehold in a company and later merges with it.

The Jualin mine is located in the Juneau gold belt which has produced more than seven million oz of gold. Lately the belt has been attracting considerable attention including the likes of Echo Bay Mines which has been evaluating the A J mine property right at Juneau. But Echo Bay hasn’t said too much about the program, probably not wishing to raise people’s expectations.

The Jualin mine, located at the north end of the belt, was picked up by Curator earlier this year. Mining ceased there around 1920 and production was about 75,000 tons grading 0.59 oz gold. The gold deposits at Jualin are contained within a northwesterly-trending shear zone ranging in width from 100 to 175 ft; the zone has been traced along a strike length of 10,000 ft so the reserve potential is considerable, it feels.

Gold mineralization is found in at least five large quartz fissure veins within the shear which grade peripherally into quartz stockwork and silicified zones. The stockwork zones range up to 80 ft wide and grade from 0.1 to 0.2 oz. Curator will be operator for a first-phase exploration program which will include 5,000 ft of drilling. The program is designed to develop drill-indicated tonnage and grade estimates in an area previously tested.

The company has also started work on its Sundance property in Wyoming, one of two properties recently optioned from fmc Minerals Corp. The Sundance deposit was discovered five years ago by fmc which completed 89 reverse circulation holes. The program indicated a potential reserve of 10 millions tons or more ranging from 0.01 to 0.18 oz, says Curator.

The gold mineralization is contained within two breccia pipes which are oxidized to a depth of 800 ft. The eastern breccia has been drilled the most and the anticipated grade is between 0.03 and 0.40 oz. An 8,000-ft drill program is planned and it will include reverse circulation and diamond drilling.