Asarco options Cross Lake bet

The property comprises 106 claims and is situated near Lac Antoine about 10 miles north of the McNickel discovery.

Asarco can earn a 51% interest in the property by paying $135,000, and spending $2 million on exploration over a 4-year period. The major company can then increase its interest to 75% by bearing all costs to production, leaving Cross Lake with a 12.5% carried interest, and Glen Auden and Tarzan each with a 6.25% interest.

The right to a 50% participation in any new equity capital issued by the three juniors is also part of the agreement with Asarco.

The claims host a number of copper-nickel surface showings, and five conductive zones outlined by a recent geophysical survey. The strongest conductor has a width of 120 ft and a strike extent of about 1,400 ft. According to Cross Lake President Robert Middleton, the strength of the conductor suggests it is caused by massive sulphides.

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