Avalon finances work in Ontario, Quebec

A private placement will enable Avalon Ventures (VSE) to finance work on its Quebec and Ontario gold projects, as well as acquire new properties.

The company has placed 1.5 million units at 40 cents per unit, for total proceeds of $600,000. The units consist of one common share and one non-transferable share purchase warrant at 40 cents per share for one year.

Of the 1.5 million units, 625,000 are flow-through and 875,000 are non-flow-through.

Funds from the former will be used to explore the Urban-Barry project in south-central Quebec and the Tarp Lake project near Pickle Lake, Ont.

The Tarp Lake program will involve 2,700 ft. of drilling in four holes to test for extensions to the East gold zone, where previous drilling encountered gold values of up to 0.21 oz. per ton over 15 ft. Avalon can earn a 49% interest in the 199-claim Tarp Lake property from Inmet Mining (TSE) by spending $1 million on exploration by March 1, 1998.

The Urban-Barry project consists of three claim blocks totalling 237 claims, which Avalon can acquire from Inmet by spending $1.5 million on exploration over three years. Avalon is about to begin a 1,500-metre diamond drill program on the Barry West block to test a gold showing that has returned assays in chip samples of 0.38 oz. over 3.9 ft.

The drilling at Urban-Barry will be preceded by basal till sampling to develop gold targets on the unexplored, overburden-covered parts of the property.

The budget for Tarp Lake is $100,000, whereas $250,000 has been earmarked for Urban-Barry. The balance of the funds from the placement will be used to acquire properties in the Mazenod Lake area of the Northwest Territories, as well as finance prospecting in Manitoba and on Avalon’s property in the Voisey’s Bay area of Labrador.