Freewest results renew interest in Harker-Holloway

Drilling has led to the discovery of three mineralized zones, the most significant of which is known as the Lower zone. Striking for more than 1,300 ft, the Lower zone remains open to the east and at depth.

Some of the better results from the zone include 57.4 ft grading 0.166 oz gold, 53.1 ft grading 0.215 oz gold, 54.1 ft assaying 0.4 oz gold and a 14.8-ft section which assayed 0.32 oz gold per ton. Another 41.4-ft section on the Teddy Bear Valley Mines (COATS) property to the west assayed 0.271 oz.

The zone strikes across the Freewest-Teddy Bear claim boundary and is being tested from both sides by Noranda. Noranda and Freewest have the right to earn a 59.5% interest in the Teddy Bear claims. Noranda and Freewest are 60-40% joint venture partners respectively. Newmont Exploration of Canada, which held the original option on the Teddy Bear claims, has a 10.5% interest in the project.

Noranda has completed a ground acquisition program and is ready to begin a $2-million exploration program, Lance Tigert, vice-president of finance at Noranda Minerals, told The Northern Miner. “We re just starting to put a higher priority” on the property, Tigert explained. “It’s still early days.”

Despite the words of caution, the company has moved quickly to get a piece of Freewest with a deal to buy 540,000 Freewest shares from treasury at $3.50 per share. Freewest has also agreed to grant Noranda an option to buy another 540,000 shares at $4 per share. Also, Noranda holds first rights on the first two million Freewest shares issued to fund future property development if warranted. The first 540,000- share placement will give Noranda a 7.8% interest in Freewest.

The cash will help Freewest fund its share of the exploration program which will utilize three drill rigs in a 2-phase 40,000-ft program, Mackenzie Watson, president of Freewest, told The Northern Miner.

The only other junior with ground along strike with the Teddy Bear and Freewest claims is Card Lake Resources (COATS). Tying onto Freewest’s eastern boundary, Card Lake has reacted to the discovery by trading up to 40 cents on the unlisted market. Both Teddy Bear and Freewest have also been strong, trading at $1.50 and $3.70 respectively on the strength of the drill results and the Noranda-Freewest deal.

]]>