Toronto-based HSK Minerals (TSE) and Joutel Resources (TSE) are about to embark on a joint venture at eight mining claims in the Guibord and Hislop Twp. areas southeast of Timmins, Ont., HSK said recently.
After acquiring an option to buy a 100% interest on the claims, HSK has dealt Joutel the right to earn 50% in return for spending $100,000 on exploration and reimbursing HSK’s cash payments to the vendor.
The claims are adjacent to Giant Yellowknife Mines’ (TSE) Ross mine property. In production since 1936, the Ross mine is currently being operated at a rate of 700 tons per day and it produced 21,047 oz gold last year.
Under the option agreement, HSK must pay the vendor $15,000 and issue 100,000 HSK treasury shares by July, 1990. HSK is also required to complete at least 1,500 ft of drilling before July, 1989. The Vendor retains a 2% net smelter return on which HSK holds the right of first refusal on any subsequent sale.
The HSK property is located 3,000 ft southeast of the Ross mine headframe covering on trend the same package of felsic metavolcanic rocks which host the Ross gold mineralization.
A program of detailed ground geophysics followed by diamond drilling is planned for the first phase of exploration, said HSK President Hugh Harbinson.
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