Vancouver A newly inked option agreement gives Cross Lake Minerals (CRN-T) rights to earn up to a 65% working interest in the past-producing Porcher Island gold property, 35 km south-southwest of Prince Rupert, B.C.
Cross Lake can earn its interest in the project by spending $2 million on exploration by Oct. 31, 2008, and by paying $100,000 and issuing 400,000 shares to vendor Imperial Metals (III-T).
Porcher Island saw limited production in the late 1930s, when 77,952 tons grading 0.29 oz. gold per ton were mined from the Surf Point and Edye Pass deposits. Gold mineralization occurs in pyritic quartz veins within steeply dipping shear or alteration zones hosted by a quartz diorite intrusive.
A fire in 1937 destroyed the mill and brought an end to production.
The project was revived in the 1970s and 1980s by various companies, including ones related to Imperial Metals. Work programs during those years outlined minable (cut and diluted) reserves of 623,095 tons grading 0.2 oz. gold over an average mining width of 11 feet, and showed potential for another 900,000 tons at similar grades to a depth of 1,00 ft. below surface. These historic reserves and resources have not yet been upgraded to meet National Instrument 43-101 reporting standards. Previous exploration also returned high-grade (multi-oz) intercepts over minable widths.
Cross Lake notes that the project has good exploration upside as only one of four known zones, AT, has been drilled in detail. The property has an existing camp still in good condition. Access to the two underground levels is available, and underground conditions are described as “good, with stable ground conditions.”
The company plans to launch a surface drilling program to extend known mineralization, primarily at the northern end of the AT zone. At the same time, it will review historic data and complete the necessary work to confirm and update the information.
Once Cross Lake has earned a 65% interest, the project will be held in a joint venture owned 35% by partner Imperial.
Cross Lake also owns the past-producing QR gold mine in central British Columbia. Subject to financing and final engineering, the company plans to restart QR while exploring Porcher Island.
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