Goldbelt to be an active player in Galore Creek (June 18, 1990)

Because of an equity stake in Pass Lake Resources (VSE) along with a healthy direct land position, Goldbelt Mines (VSE) will be an active player in the Galore Creek area. Galore Creek is part of the area north of Stewart, B.C., termed the “Golden Triangle,” although it looks more like a parallelogram.

Goldbelt’s land position in the Galore Creek area includes 90,000 acres acquired by staking, plus an indirect interest in more than 230 square miles of mineral leases held through a 10.62% equity interest in Pass Lake Resources. Fully diluted, through the exercise of 260,000 warrants at $0.475 each, this interest would increase to 15.22%.

In addition, Goldbelt purchased the 47,000-acre Trophy project from Continental Gold (VSE) in March in return for a 10% net profits interest and 750,000 treasury shares. Gigi Resources (VSE) has an option to earn a 55% interest in this property by spending $5.5 million by 1994.

Gigi spent $500,000 on the property in 1988 and 1989 and identified a number of precious metal targets. The company was successful in intersecting one target with a 33-ft. interval grading 0.12 oz. gold per ton, 6.24 oz. silver, and 2.87% zinc, and a second hole intersecting 36 ft. of 0.16 oz. gold, 0.88 oz. silver, and 1.11% zinc. Gigi plans to spend about $1 million on the property this summer.

Goldbelt has also optioned a number of properties to West Sea Development (VSE) in return for that company issuing 100,000 treasury shares, reimbursing Goldbelt’s acquisition costs, and spending a total of $1.5 million over a 4-year period. West Sea plans to spend about $200,000 on the plays this summer with a program of reconnaissance geological and geochemical work.

In addition to Goldbelt’s large stable of properties, the majority of which will be explored using other company’s capital, Goldbelt has a big backer sitting quietly in the shadows. Corona (TSE) holds a 19.65% equity interest in the company, purchased through a private placement of 2.7 million shares at $0.45 each in Nov., 1989.

Despite the fact that the majority of the Galore Creek area is at a grassroots exploration stage, Goldbelt Chairman Mike Muzylowski is confident discoveries will be made as exploration money is thrown at the play this summer.

The excitement over the Galore Creek area is predicated on the theory that the periphery of porphyry copper deposits is a good hunting ground for precious metal and polymetalic deposits.

The presence of porphyry copper in the area has been known for years, following the discovery of the Galore Creek deposit in the 1950s.

The Galore Creek deposit, owned by Hudson’s Bay Mining and Smelting (TSE), Cominco (TSE), and Kennecott was discovered in the 1950s and is estimated to contain 125 million tons grading 1% copper and 0.012 oz. gold.

A second porphyry, the Shaft Creek, owned by Teck (TSE), is even larger with geologic reserves of about one billion tons grading 0.33% copper, 0.034% molybdenum, 0.004 oz. gold and 0.035 oz. silver.

Because of an equity stake in Pass Lake Resources (VSE) along with a healthy direct land position, Goldbelt Mines (VSE) will be an active player in the Galore Creek area. Galore Creek is part of the area north of Stewart, B.C., termed the “Golden Triangle,” although it looks more like a parallelogram.

Goldbelt’s land position in the Galore Creek area includes 90,000 acres acquired by staking, plus an indirect interest in more than 230 square miles of mineral leases held through a 10.62% equity interest in Pass Lake Resources. Fully diluted, through the exercise of 260,000 warrants at $0.475 each, this interest would increase to 15.22%.

In addition, Goldbelt purchased the 47,000-acre Trophy project from Continental Gold (VSE) in March in return for a 10% net profits interest and 750,000 treasury shares. Gigi Resources (VSE) has an option to earn a 55% interest in this property by spending $5.5 million by 1994.

Gigi spent $500,000 on the property in 1988 and 1989 and identified a number of precious metal targets. The company was successful in intersecting one target with a 33-ft. interval grading 0.12 oz. gold per ton, 6.24 oz. silver, and 2.87% zinc, and a second hole intersecting 36 ft. of 0.16 oz. gold, 0.88 oz. silver, and 1.11% zinc. Gigi plans to spend about $1 million on the property this summer.

Goldbelt has also optioned a number of properties to West Sea Development (VSE) in return for that company issuing 100,000 treasury shares, reimbursing Goldbelt’s acquisition costs, and spending a total of $1.5 million over a 4-year period. West Sea plans to spend about $200,000 on the plays this summer with a program of reconnaissance geological and geochemical work.

In addition to Goldbelt’s large stable of properties, the majority of which will be explored using other company’s capital, Goldbelt has a big backer sitting quietly in the shadows. Corona (TSE) holds a 19.65% equity interest in the company, purchased through a private placement of 2.7 million shares at $0.45 each in Nov., 1989.

Despite the fact that the majority of the Galore Creek area is at a grassroots exploration stage, Goldbelt Chairman Mike Muzylowski is confident discoveries will be made as exploration money is thrown at the play this summer.

The excitement over the Galore Creek area is predicated on the theory that the periphery of porphyry copper deposits is a good hunting ground for precious metal and polymetalic deposits.

The presence of porphyry copper in the area has been known for years, following the discovery of the Galore Creek deposit in the 1950s.

The Galore Creek deposit, owned by Hudson’s Bay Mining and Smelting (TSE), Cominco (TSE), and Kennecott was discovered in the 1950s and is estimated to contain 125 million tons grading 1% copper and 0.012 oz. gold.

A second porphyry, the Shaft Creek, owned by Teck (TSE), is even larger with geologic reserves of about one billion tons grading 0.33% copper, 0.034% molybdenum, 0.004 oz. gold and 0.035 oz. silver.