Celtic to earn in on Garland ground

An option deal between Celtic Minerals (CME-V, CMIGF-O) and Cornerstone Capital Resources (CGP-V, CTNXF-O) will let Celtic earn a 51% interest in Cornerstone’s Garland property in Labrador, 30 km southeast of Voisey’s Bay.

Celtic is to spend $500,000 in the first year of the 4-year deal, with work expenditures to total $3 million by the end of the agreement. Cornerstone gets $50,000 in cash now and another $400,000 over the life of the agreement.

The option becomes a joint venture after four years, with provisions for interests to be diluted, ultimately to a 2% net smelter return, if one company is not funding its share.

Troctolite and olivine gabbros resembling the Voisey’s host rocks have been mapped on the Garland property, and a magnetotelluric survey done by Inco (N-T, N-N) in 2001 detected several conductors on the property, interpreted to be at about 800 metres depth. Inco staked about 1,700 sq. km of ground in the area surrounding Garland.