Juniors follow Freewest Res. into Benoit Twp. gold

Shares of at least 10 junior companies with claims in the Benoit Twp. area of northern Quebec have posted gains since Freewest Resources (TSE) reported an intersection of 162.5 ft. grading 0.15 oz. gold per ton on its claims nearly six weeks ago. The gold discovery, announced in early February, set off a staking rush and prompted a number of junior exploration firms to acquire land positions around Benoit Twp.

Shares of Freewest have traded recently at $4.25, up sharply from the $3 level when the discovery was first announced. The Benoit Twp. find represents Freewest’s second gold property to exhibit mine-making potential during the past year. The company’s other promising project, with more than five million tons of reserves outlined to date, is the Harker-Holloway joint venture operated by Noranda (TSE) in northeastern Ontario.

“It’s very rare for a small company like Freewest to have two properties with a shot at becoming mines,” said one analyst. “All the activity in Benoit Twp. has temporarily taken the spotlight off the Holloway project.” Meanwhile, Montreal-based Lyon Lake Mines (ME) has moved quickly to position itself in the Benoit Twp. gold play by obtaining an option on Canaco’s (ME) claims which adjoin the Freewest discovery. Lyon Lake can earn a 50% interest in Canaco’s 34-claim property, by paying $25,000 and spending $400,000 on exploration over a 4-year period.

Vancouver-based Inlet Resources (VSE) said it is also negotiating to acquire a 70-claim property adjacent to the discovery group, while in another recent deal, Minorca Resources (VSE) acquired a 19-claim property in Le Tac Twp., one township east of Benoit. Minorca’s property was previously tested for base metals by two short holes in 1962. Those holes contained several sections of massive sulphides within a sericite schist, but the mineralized intervals were only assayed for copper and nickel, but not ass ayed for gold.

Partners Beaufield Resources (TSE) and Beauchamps Resources (VSE) have also acquired 50 claims adjacent to the Freewest discovery. The Beaufield/Beauchamps claims cover part of a northeast trending extension along the Lac Pusticamica fault.

The latest results from three follow-up holes on the Freewest property contained several wide intervals with grades above 0.10 oz. gold per ton. Assays from those holes are as follows: Hole From-To Width Gold

(ft.) (ft.) (oz./ton) 9 619.0-679.7 60.7 0.10 10 387.5-438.3 50.8 0.10 incl. 387.5-416.6 29.1 0.14 11 475.7-628.3 152.6 0.14 incl. 482.4-508.8 26.4 0.17

573.1-621.0 47.9 0.19

523.2-628.3 105.1 0.15 Freewest said hole 9 was drilled to undercut the discovery hole while the other two stepout holes (10 and 11) were drilled about 131 ft. west along strike. According to Freewest President Mackenzie Watson, two drills are still working on the property and will continue to test the gold zone along its strike and at depth extensions.

The gold mineralization intersected to date occurs in a pyritic schist under the waters of Lac Pusticamica. The discovery is in a structurally complex area believed to be associated with the intersection of the northeast trending Lac Pusticamica fault and an east-west trending cross-structure.

In nearby Nelligan Twp., which adjoins Benoit to the north, Noranda (TSE) has agreed to spend $1 million on exploration to earn a 50% interest in 60 claims owned by 50-50 partners Orient Resources (ME) and Consolidated Gold Hawk Resources (ASE). The latter property also hosts a significant gold discovery associated with sulphides in a sheared quartz-sericite schist. Company Feb. 5 Mar. 5 Freewest Res. $3.05 $4.25 Beaufield Res. 0.10 0.12 Orient Res. 0.15 0.24 Cons. Gold Hawk 0.55 0.70 Beauchamps 0.21 0.25 Lyon Lake 0.11 0.21 Canaco 0.08 0.42 Inlet 0.16 0.19 Golden Tag 0.23 0.31 Mint Gold 0.65 0.80