Avalon, Starcore nab five N.W.T. properties

Avalon Ventures (VSE) and Starcore Resources (VSE) have acquired five additional mineral properties between them in the Mazenod Lake area of the Northwest Territories.

The companies have agreed in principle to pool their interests in the five properties, forming a 50-50 joint venture to share acquisition and exploration costs. Avalon President Donald Bubar sits on Starcore’s board of directors, while Starcore President Ralph Brown is part of Avalon’s.

Avalon staked the 4,907-acre Ketchison Lake property and optioned the 3,835-acre Cole Lake property from a numbered company for $25,000 and 100,000 shares. Avalon will have a 100% interest, but the numbered company retains a 2% net smelter return royalty. Avalon now has an interest in three properties in the area.

Starcore optioned the 5,113-acre Dennis Lake property and the 2,221-acre Dianne Lake property under an agreement with a Yellowknife-based prospector. Starcore can earn a 100% interest in the properties by paying $45,000 and issuing 150,000 shares, but the prospector retains a 2% net smelter return royalty. Starcore can purchase half of the royalty at any time for $1 million. The company also staked the 10,640-acre Sarah Lake property.

Meanwhile, Avalon has optioned the Hemlo, Ont.-area Jackfish gold property from two Ontario prospectors. Avalon can earn a 100% interest in the 25-claim property by paying $4,000 and issuing 25,000 shares, but the prospectors retain a 2% net smelter return royalty.

The Jackfish property covers a gold-bearing shear zone (assays from surface samples up to 0.35 oz. gold per ton) that has never been drilled. Avalon plans to carry out geological mapping and sampling of this zone in 1996.

Avalon and Starcore have been unable to reach an agreement whereby the Percy Lake and Percy Creek base metal properties in Ontario would be optioned to Cominco (TSE), and negotiations have been terminated. The companies are considering alternatives to finance work programs on the two properties in 1996.