Work will start immediately on an optioned 28-claim property in Haines Twp., about 100 km west- northwest of Thunder Bay, Ont., according to a report by Gowest Amalgamated Resources.
Gowest has optioned the property from Cominco Ltd., which had done some work on it in the late ’30s. By spending $250,000 in a first-phase exploration program, Gowest can earn a 40% equity in the property.
Subsequently, expenditures of $250,000 in each of a second and third stage of exploration would bring Gowest a 60% and 100% interest respectively. On notice of production, says Gowest director John Pollock, Cominco would pay twice the amount spent by Gowest on exploration against the first capital costs to bring the property into production.
In an ensuing joint venture, Gowest and Cominco would hold a 40% and 60% equity respectively.
In 1937, Cominco drilled four widely-spaced holes on the property, and in hole No 1, despite poor core recovery, an intersection of 0.11 oz gold per ton over 8 ft was obtained in metasediments. Within the section, a 2-ft interval assayed 0.28 oz gold per ton.
In another hole, No 4, a 5-ft intersection included 1 ft of lost core, grading 0.10 oz gold per ton.
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