Central, Joutel reach agreement on Blue Quartz

Central Crude Resources has completed an agreement with Joutel Resources giving the former company the right to earn a 50% interest in Joutel’s Blue Quartz gold property. Located near Matheson, Ont., the property hosts reserves of 128,000 tons grading 0.86 oz gold per ton.

Central Crude can earn its interest by spending $400,000 on exploration and making cash payments to the original vendors totalling $50,000. The 1,012-acre property protects the Blue Quartz gold mine, which was developed by a 500-ft vertical shaft and two winzes to a depth of 750 ft. More than 6,30 0 ft of underground drifting and raising was performed by previous operators. In 1922, mine records note that a 50-ton sample of ore graded 16 oz gold per ton.

The property lies along a section of the Pipestone fault, a major structural feature striking east-west across the area. Central Crude, the project operator, plans to start work shortly. A diamond drilling program will attempt to build reserves and test other sections of the fault.