Freewest gears for number of winter drill programs

Despite continuing low share prices, Freewest Resources (TSE) has much to be optimistic about, President Mackenzie Watson announced at the company’s recent annual meeting.

“Things, exploration-wise, are looking very encouraging,” and the company could be involved in a number of drill projects this winter, he said. For example, Watson said Freewest has just signed an agreement with two juniors to spend $500,000 over three years to obtain a 50% interest in a site at Quevillon sur Lebel, about 20 miles southwest of its Benoist Twp. gold property in Abitibi, Que.

A backhoe is on site and information on results should be available in the next few weeks. “The area has the potential for a good deposit,” Watson said. “I feel very strongly we should come up with something very good.” Watson also added that prospects for base metals in Freewest’s New Brunswick projects also look good.

He said it is frustrating to see Freewest share prices extremely undervalued, but predicted there will be speculation on the stock over the next six months because of expected new discoveries. The company is also looking into the possibility of listing on the NASDAQ exchange to increase exposure in the U.S. Watson also announced that the Quebec government has made a preliminary draft decision to turn down the claims by Forbex Mining Resources (ME) at the disputed Benoist Twp. site. Forbex had been disputing 54 claims, 39 of which are held by Freewest.

Some of the claims staked by Freewest at the site in January, 1989, will also be cancelled, if the draft decision is upheld. “We’re extremely pleased that Forbex’s claim jumps are being thrown out,” said Watson, adding that he is not so thrilled that some of Freewest’s claims could also be rejected. Watson also said Freewest will be spending $4 million toward a $12 million, 14-month program of road upgrading, underground exploration and ore reserve validation at the Lightning gold zone in northeastern Ontario, which it shares with Hemlo Gold (TSE) and Teddy Bear Valley Mines (CDN). The three companies recently announced formation of a joint venture to fund and manage the Holloway project.