Baroque Resources has completed an option agreement with Homestake Mineral Development giving the company the right to earn a 51% interest in Homestake’s Miminiska antimony deposit.
Located west of Fort Hope, Ont., the property hosts reserves of 600,000 tonnes grading 3% stibnite with low gold values. Stibnite is the principal mineral of antimony. The reserves were established by New Jersey Zinc Exploration which spent $2.5 million on the property between 1975-1983.
Baroque can earn its interest by spending $2.6 million on exploration by 1991. Upon earning its interest, Baroque must spend an additional $2.4 million before Homestake is required to contribute as to its 49% interest.
The property is currently burdened by a hefty 6% net smelter royalty held by Gulf and Western Industries. Upon receiving $3 million from any future production, the royalty gets reduced to 4% — still well above average Canadian net smelter royalties.
The first phase of exploration work, which is being funded by a flow-through share financing, includes diamond drilling which is in progress. Drilling will focus on testing the gold potential of the antimony deposit.
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