Vancouver-based juniors Holmer Gold Mines (HGM-T) and International CanAlaska Resources (ICA-V) are joining forces.
Under the proposed merger, the assets of both companies — including exploration properties in Canada, the U.S., Mexico, Cuba, Panama and Venezuela — will be managed by one single company, the name of which has yet to be announced.
“This amalgamation will result in a substantially larger company with significant holdings in the Timmins [Ontario] gold camp and a valuable portfolio of international assets,” says Holmer President K.S. Raman.
CanAlaska President Harry Barr added that “the management of both CanAlaska and Holmer believe that the proposed merger will greatly benefit their respective shareholders.”
Chief among Holmer’s Canadian assets is the wholly owned Bristol Twp. gold project, west of Timmins, where drill crews are attempting to confirm and extend two gold zones discovered in 1996. The project is envisaged as an open-pit operation, and drill results indicate that gold mineralization is present in four parallel zones within a shear structure about 700 ft. wide.
The deposit’s strike length is estimated at 820 ft.
Highlights from drilling carried out in 1997 include hole 32, drilled in the Hangingwall zone, which returned 0.2 oz. gold per ton over 37.1 ft., and hole 56, drilled in the Ultramafic zone, which cut 0.18 oz. gold over 63.5 ft.
Watts, Griffis & McOuat estimates that the property contains a reserve of 1.3 million tonnes grading 8 grams gold. Also, an indicated resource of 797,000 tonnes grading 6.8 grams gold is supplemented by 542,000 tonnes of 9.8 grams gold in the inferred category.
Among the company’s other assets is a 50% interest in the Loma Hierra silver deposit in western Cuba, which is expected to produce 1.5 million oz.
annually at a cash cost of US$1.85 per oz. A feasibility study is in progress.
For its part, CanAlaska holds properties adjacent to high-profile discoveries near Timmins and South Voisey’s Bay, Labrador, as well as in Mexico’s Zacatecas state.
Holmer and CanAlaska have $2.6 million and $2.7 million in cash and securities, respectively.
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