Blue Emerald options Lac St. Jean properties

Subject to regulatory approval, Blue Emerald can earn a 60% interest in the Lac St. Jean area claims of 140125 Canada Inc., a private company owned by J. T. Flanagan and John McAdam of Toronto. The latter are also principals behind McNickel Inc. (COATS) which was created earlier this year to explore a promising copper-nickel discovery nearby.

Included in the deal is a property covering the Lac du Caribou copper-nickel -cobalt occurrence, 12 km north of the McNickel discovery. An airborne electro-magnetic survey of the Caribou property has indicated the presence of a 1.5-km long conductor co-incident with the sulphide showing. No other exploration work has been carried out on the property.

Blue Emerald President Richard Nemis says a minimum of $500,000 will be spent exploring the newly acquired properties this year. Operator of the exploration program will be Flanagan and McAdam’s geological consulting firm. “Our exploration program will likely run in combination with the McNickel program,” said Nemis.

Consideration for the property acquisition includes a cash payment of $150,000, and 50,000 common shares upon receipt of stock exchange approval. After $500,000 has been spent on exploration, a further 150,000 Blue Emerald shares will be issued, followed by 100,000 shares upon commencement of commercial production. In order to earn its full 60% interest, Blue Emerald must also expend an additional $1 million on exploration.

According to Nemis, his involvement in the Lac St. Jean area was essentially “a natural progression,” stemming from earlier associations with Flanagan and McAdam. “We already shared a common association through the Mishibishu Lake gold camp” he said.

Nemis is also president of Central Crude (TSE) which is exploring the promising Eagle River gold property near the Magnacon mine which is 75% owned by the two companies merged by Flanagan and McAdam. “We have been sharing information from the Central Crude and Magnacon properties and will probably do the same on the Lac St. Jean properties” said Nemis.

After signing the recent Lac St. Jean option agreement, the shares of Blue Emerald advanced 73 cents to close at 98 cents on the Vancouver Stock Exchange.

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