Cyprus options Massicotte gold play

Colorado-based Cyprus Canada can acquire an initial 60% interest in the Massicotte gold property of Ressources Minieres Coleraine (ME). The property is 125 km north of La Sarre, Que.

Cyprus must pay $81,000 and spend $1 million on exploration before June 1, 1998. After earning its interest, the company can either form a joint venture with Coleraine or acquire an additional 40% in exchange for $40,000 in cash and an additional work commitment of $500,000 before June 1, 2000. Coleraine would retain a 2% net smelter return royalty.

In the late 1980s, Coleraine discovered a gold-bearing shear zone on the property, which contained values of 0.1-10.2 grams gold per tonne over widths of 0.3-2.7 metres. The company believes the deposit is geologically similar to the Golden Pond deposit owned by Golden Knight Resources and TVX Gold. In March, Cyprus intersected 7.5 grams gold over 3.3 metres in a hole drilled on the adjacent property owned by Ressources Minieres Radisson (ME). In other news, discussions are under way between Coleraine and a subsidiary of the Metallgesellshaft Group over the Frankfurt-based company’s possible involvement in Coleraine’s ferrochrome project near Thetford Mines, Que. Metallgesellshaft apparently is interested in providing mining, exploration, engineering, financing and marketing services for the project, which contains 1.03 million tonnes averaging 4.5% Cr2O3 and 0.17 grams platinum per tonne.