A recent letter of agreement sets the stage for Hemlo Gold Mines (TSE) to begin earning a 50% interest in the Taurus copper-molybdenum-gold property of Lodestar Explorations (VSE) in east-central Alaska.
Exploration targets on the property include the East Taurus zone where previous operators intersected 878 ft. grading 0.32% copper and 151 ft. of 0.4% copper (both holes ended in mineralization). One hole in the East Taurus zone which was assayed for gold returned 410 ft. of 0.22% copper and 0.016 oz. gold per ton.
The property also hosts the larger West Taurus anomaly measuring 6,000 ft. by 2,500 ft. This target is located less than two miles from the East Taurus zone, and has received limited followup work.
In a separate letter of agreement, Lodestar was granted the right to earn a 50% interest in Hemlo’s Clear Creek gold property 25 miles northeast of the advanced Hemlo-Loki Brewery Creek gold project near Dawson, Yukon. The geological target on the Clear Creek property is a large tonnage, low-grade gold porphyry with shear-controlled intrusive-hosted gold. Noranda’s work to date on this property outlined two large gold-in-soil geochemical anomalies.
The exploration programs on both properties will be carried out by Noranda Exploration on behalf of Hemlo Gold. In order to earn its interest in the Taurus property, Hemlo must spend $4 million on exploration and development by the end of March, 1997, in yearly increments. Hemlo must also make staged cash payments to Lodestar totalling $350,000 over five years. Lodestar must fund $2.5 million of exploration work on the Clear Creek property by March 31, 1995, in order to earn a 50% interest. It must also make cash payments to Hemlo totalling $173,500 over four years.
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