Golden Terrace to merge assets with Stan North

With its shares trading in the 15 cents range, Golden Terrace is unable on its own to finance exploration at a number of properties and an amalgamation with privately owned Stan North is seen as the answer.

A letter of intent has been signed and shareholders of both companies will be asked to ratify the planned transaction at a meeting in December.

Golden Terrace and Stan North already have interlocking interests in the DeSantis gold project near Timmins, Ont., where possible reserves stand at 334,308 tons of grade 0.19 oz gold per ton.

Stan North is affiliated with Stan West Mining (TSE), an Arizona- based company with gold properties in the U.S. and Timmins.

However, according to Stan North President Peter Holmes, it is a copper-zinc project at Pine Bay near Flin Flon, Man., which will become the priority target if the merger is completed.

In 1970 a positive feasibility study was tabled by Wright Engineering, and only the failure of previous operators to obtain a favorable smelting contract prevented Pine Bay from being brought into production, Holmes said.

The property contains three areas of interest including a copper-rich deposit containing 1.1 million tons of grade 2.76% copper. Inferred reserves of 750,000 tons have been outlined on the Cabin zone where recent drilling returned a 156.6-ft intersection assaying 1% copper and 4.05% zinc.

A third target area is the Baker Patton zone where a copper-zinc bearing sulphide deposit, with widths of up to 100 ft, has been outlined. “Pine Bay represents our best chance for generating revenues in the near future,” said Holmes. He would be looking for copper and zinc prices to average about $1.30(US) and 70 cents per lb respectively to justify a production decision.

Shareholders of Golden Terrace are expected to hold about 40% of the merged company’s issued capital while the balance goes to former shareholders of Stan North. Holmes declined to predict how much cash would be available within the merged company for exploration purposes.

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