Fleck Resources signs Marathon property deal

Vancouver-based Fleck Resources recently agreed to participate in a number of Ireland and Canada-based joint ventures which could add to its reserves of gold and platinum.

In the first of three agreements, Euralba Mining of Australia has an option to earn a 51% interest in Fleck’s Marathon, Ont., platinum group metals deposit by spending $2.5 million by June 1989 on a visibility study.

Under the agreement Euralba will also arrange a private placement of 200,000 Fleck shares at $3.00 per share, with share purchase warrants to purchase an additional 200,000 shares at $3.60 per share for one year.

Fleck signed a similar arrangement with Teck Corp. last September, but the Vancouver-based mining giant pulled out two months later when it decided that smelter schedules didn’t allow it sufficient return on investment.

In March, Toronto-listed Laurasia Resources acquired a controlling block of 1.54 million or 34% of Fleck’s issued shares.

Supervised by both Fleck and Euralba, development work on the project will consist of more detailed assaying, confirmatory diamond drilling, test mining and further metallurgical tests and will culminate in a feasibility study.

If the feasibility study is positive, Fleck would be responsible for production financing and would remain as operator of the property which has an estimated inventory of between 19 to 47 million tons grading 0.07 oz platinum/palladium and 0.45% copper.

As 100% owner, Fleck has already spent $1 million on the property and Mr McGoran says it will cost around $100 million to develop the mine.

In a second agreement, Fleck has acquired by staking 175 Yukon claims in a joint venture with Chevron Canada Resources, and Allnorth Resources.

Fleck has a 50% interest while Chevron and Allnorth each have a 25% interest in the claims which are in a similar geological environment and close to the Wellgreen Mine located south of the Yukon, Alaska border.

Galactic Resources recently acquired a 50% interest in the 92-claim Wellgreen property by agreeing to pay Hudson Yukon Mining Co. $3.5 million and assume an intercompany debt for $3.2 million.

Fleck President John McGoran says it contains important values of platinum metals, copper and nickel. Proven and probable reserves calculated by Hudson-Yukon in 1972 totalled about 500,000 tons averaging 2.04% nickel, 1.42% copper, 0.005 oz gold per ton.

However, based on new platinum group assays and reinterpretation of the deposit as a potential open pit mine, Hudson-Yukon Mining/ Kluane Joint Venture is planning an aggressive and systematic evaluation of the property in 1987 with bulldozer trenching and diamond drilling.

Fleck and its joint venture partners have planned a comprehensive exploration program on the newly acquired claims during the summer of 1987.

Under a second agreement in which Fleck has signed a letter of intent with Westland Exploration (a wholly-owned subsidiary of Ennex International), Fleck can earn a 50% interest in a 120-sq-km property in County Louth in the Republic of Ireland.

Located on the Carlingford layered mafic complex, the property has produced assay results from loose boulders of 0.034 oz platinum, 0.034 oz palladium and 0.008 oz gold.

The Westland agreement is subject to the approval of Ireland’s Department of Energy.

Fleck shares which suffered after the Teck pullout, were trading on the Vancouver Stock Exchange recently at $3.35, between its 52-week high and low which are $5.25 and $2.30 respectively.