Juniors Consolidated Westview Resources (CWS-V) and Avalon Ventures (AVL-V) will jointly explore three of the latter’s gold properties in northwestern Ontario.
The companies signed a letter-of-intent granting Westview the right to earn half-interests in the adjoining Dubenski, Flint Lake and East Cedartree properties.
Dubenski, the most advanced of the three, hosts a resource of 230,000 tonnes grading 8.23 grams gold per tonne. Mineralization is associated with the strongly altered Flint Lake shear zone, an easterly trending splay off the regional Cameron-Pipestone fault.
Within the deposit are three subparallel, high-grade lenses that have returned up to 32.64 grams gold over 10.1 metres in drilling. Each lens remains open along its shallow easterly plunge.
About 500 metres south of the deposit lies a separate gold-bearing structure, grab samples of which have returned up to 177.5 grams gold.
Avalon reports that several of the samples contained abundant, fine-grained visible gold similar to that which is found in the deposit’s high-grade lenses.
To earn its interest, Westview must spend $2.5 million on exploration over five years, pay $50,000 in cash and issue 50,000 shares, as well as cover half of the future payment obligations to underlying property owners. The company can then earn an additional 10% by spending $1.5 million on exploration by Dec. 1, 2006 and issuing 25,000 shares to Avalon.
The deal, which is subject to a due diligence review, calls for Avalon to contiue as operator till year-end, at which time Westview can take over.
Diamond drilling is expected to start shortly.
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