Goldcap attempts to finance B.C. joint venture projects

After filing a private placement to fund exploration on one of its British Columbia gold properties, Alberta-listed Goldcap Inc. is attempting to attract a financier for work on another.

In a bid to raise $500,000 for a 3-year exploration program at the Tommy Jack property near Prince George, B.C., negotiations involving Goldcap, Noranda Exploration and a third party are taking place.

When the funds are spent, both Noranda and Goldcap will each retain a 25% working interest in Tommy Jack where drilling has indicated a lateral northwest- southeast zoning of gold-silver mineralization.

In another development, Goldcap recently announced a private placement to raise a maximum $430,000 for exploration on the tas joint venture property 40 miles north of Fort James in central British Columbia.

Goldcap says it has filed a private placement with the Alberta Stock Exchange offering a minimum 66,000 and maximum 200,000 units at $2.15 per unit. With each unit consisting of three flow- through and 1 Class A common share, the offering was scheduled to open Jan 15.

Following an agreement with Noranda, Nov 27, Goldcap can earn a 50% working interest in the tas gold properties by spending $1 million over four years.

By October 1987, Noranda, as operator, had identified several exploration targets at the 15-claim property.

Visible gold in quartz-carbonate alteration was initially identified on the tas property in a showing called the Freegold Zone, Goldcap says. A separate 600 x 3,000-m alteration zone called the Ridge Zone was also discovered through soil geochemistry and trenching.

According to Goldcap, evaluation of chip sample results from exposed sulphide in two 100-m trenches and wide spaced 50-m deep drill results, infer 54,000 tons at 0.195 oz gold per ton and 32,700 tons at 0.22 oz respectively.

Under the agreement with Noranda, Goldcap can convert its tas interest to a 10% working interest after spending $200,000. In a bid to meet its commitment to Noranda before March 1, Goldcap recently negotiated a joint venture agreement with Vancouver and Montreal-listed Tyler Resources.

By putting up $115,000 to finance phase 1 of the tas exploration program, Tyler can earn 5% or 1/2 of the Goldcap’s 10% working interest.

However, in addition to reacquiring Tyler’s 5% interest when Phase 1 is complete, Goldcap has the right to increase its interest in the tas properties to 45% by spending $20,000 for for each additional percentage point.