American Barrick to option Glen Auden gold bet

An option agreement is in the works which will see American Barrick Resources (TSE) acquire control of a large gold property owned by Glen Auden Resources (TSE) and Goldrock Resources. Thomas Skimming, president of Glen Auden, says a letter of intent has been signed with American Barrick concerning a joint venture on its 645-claim Sewell-Reeves property 45 miles southwest of Timmins, Ont.

Under the agreement, Barrick will have the option of acquiring a 60% interest in the gold property by making cash payments totalling $75,000 and work expenditures totalling $2 million over a 5-year period. Barrick will also assume obligations covering several underlying option agreements.

The property, currently owned 50/50 by Glen Auden and Goldrock, covers rocks interpreted to be stratigraphically equivalent to those of the Porcupine gold camp. A number of major fault structures, including a possible extension of the Porcupine Destor fault, have been identified on the property.

Anomalous till samples containing visible gold grains have also been encountered near the faults, the company reports.

Extensive mapping, trenching and IP surveys by Glen Auden in 1988 revealed major carbonate zones containing anomalous gold values. One surface channel sample across a 3.3-ft width yielded an assay of 1 oz gold per ton.

Glen Auden is also involved in over 25 other exploration projects in Ontario and Quebec.