BP Canada acquires Newfoundland option

The property, which in the past underwent exploration for magnesite and talc, lies close to a highway about 30 miles southwest of Gander and about the same distance south of Bishop’s Falls. BP is interested in the gold mineralization on the property, as were U.S. Borax and Atlantic Goldfields which undertook recent searches.

Murphy said BP may earn a 100% interest by spending $1 million on exploration during the next three years and by making cash payments. Murphy has retained a 2% net smelter royalty and has the option to back into a 40% interest.

A BP report describes the property as having excellent discovery potential with a possible disseminated style of mineralization which could constitute a bulk tonnage target. Surrounding claims belong to major mining companies — Rio Algom to the west, Falconbridge to the south and Noranda to the east — and Murphy has retained a substantial number of claims immediately to the north of the BP- optioned property in his name.

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