Kerr may spend close to $2 million on B.C. gold bet

A joint venture agreement between Kerr Addison Mines and International Coast Minerals could see the former spend $1.75 million on a gold property in the Kennedy Lake area on Vancouver Island. Coast Minerals, which expects to go public on the Vancouver Stock Exchange in the near future, says the property was originally staked by its president in 1980. Teck Explorations optioned the ground in 1984 and conducted geological, geochemical, electromagnetic and magnetometer surveys over portions of the claim group; but dropped it after completing the work.

High grade gold values have been found there in narrow, northeasterly-trending, parallel quartz veins and veinlets. The mineralized zone is approximately 8,000 ft long and from 325-2,000 ft in width so the potential for a large, low grade bulk tonnage situation is excellent, the joint venture concludes.

Kerr Addison will be able to earn a 60% interest in the United Tommy group for $1.75 million, which would include a first-phase exploration program involving at least 6,000 ft of drilling by Dec 31, 1987.

Coast also holds some exclusive ground adjacent to the Tommy group where gold mineralization has been noted in quartz veins within a wide, persistent regional shear zone. That whole zone will be explored in detail, the company says. Both properties are close to Port Alberni, a major logging centre, and road access is available right to the property, as well as power.