Vancouver-based Iskut Gold (VSE) has obtained the right to earn a 50% stake in Les Mines J.A.G.’s (ME) Belleterre gold property, 62 miles southwest of Val d’Or, Que. To earn the interest, Iskut Gold must issue 25,000 shares to Les Mines J.A.G. and spend $1.05 million on the property over three years, including a minimum $50,000 by Dec. 31.
Iskut Gold is also required, under the agreement, to pay J.A.G $150,000 over 3-4 years in quarterly instalments of $15,000. During the option period, any profits generated by bulk sampling or production are scheduled to be shared equally, once the Iskut shares have been issued and $50,000 spent.
The 2,268-acre Belleterre property includes the former Belleterre Quebec mine which produced 723,384 oz. gold at an average grade of 0.32 oz. per ton in 1936-59.
Gold values obtained from sampling on the J.A.G. property indicated that visible gold, mixed with sulphides, exists within a series of veins, one of which is exposed for 80 ft.
According to Iskut, the joint venture will extract a 5,000- to 7,000-ton bulk sample, carry out an airborne survey and review all previous work done on the property.
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