Thirteen diamond drill holes at the 132-claim gold property of Glimmer Resources (VSE) in northeastern Ontario have yet to uncover any great tonnage, but there is plenty of area left to explore, shareholders were told at the company’s first annual meeting.
Toronto-based Glimmer, which went public last year, has an option agreement with Canamax Resources (TSE) whereby the latter may earn a 50% interest in the property, located in Barnet Twp., north of Kirkland Lake, in a 2-phase exploration program.
While surface trench samples turned up grades of more than 1 oz gold per ton, drilling to date (at 164-ft intervals) has intersected much lower grades, the best being 0.2 oz over 6.6 ft, Vice-president R. Michael Jones said.
The company remains confident. “I think there’s lots there for Canamax to work on,” Jones said.
Under the agreement, Glimmer received a cash payment of $250,000 from Canamax as well as $150,000 which Glimmer is spending on exploration work. Also, Canamax is spending $300,000 on exploration. Should Canamax choose to continue when the first phase of the agreement expires Aug 18, phase two (also eight months in duration) will carry identical financial commitments. Canamax will then have earned its 50% interest.
Having reached that stage, Canamax may then earn an additional 10% interest by spending $1.5 million during the next 2-year period.
Glimmer, which has about 1.6 million shares outstanding and working capital of about $347,500, has acquired a second property, 540 acres in size, located east of Matheson, Ont., but has not undertaken any exploration work there yet. The company is hoping to make an option arrangement with a major company for exploration of the property.
Elected to Glimmer’s three- member board of directors were George Kent, president, Melvin Yen and Jones.
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