Lac joins Queenston

After losing Northfield Capital Corp. in the Oct 19 market debacle, Queenston Gold Mines has found a new partner to assist in developing the promising Kirkland West gold property, near Kirkland Lake, Ont.

Queenston says Lac Minerals has agreed in principle to undertake a major underground exploration at Kirkland West which is considered the jewel of the Queenston portfolio of properties.

Kirkland West is thought to contain the western extension of a geological formation called the Kirkland Lake “Main Break” which has produced 23 million oz gold.

Located 300 ft west of Lac’s Macassa mine, and 1,200-ft from Macassa’s new No 3 shaft, the property covers the projected westward extension of the famous geological anomaly for a 1-mile strike length. Kirkland West’s proximity to Macassa which was expected to produce about 70,000 oz gold last year, makes it a prime exploration target.

Back in early October, Northfield Capital and a private company called Canadian Ore Mining agreed to earn a 50% interest in Kirkland West by spending $50 million to bring the property to production.

Essentially, that agreement allowed Queenston to develop the property to production without spending a penny. But Northfield was forced drop out two months later when it couldn’t raise the necessary financing.

Queenston Chairman Hugh Harbinson refused to reveal its contents, but the new agreement will allow the Toronto company to develop the property much faster than in a Queenston/Northfield venture.

While Northfield had tentatively agreed to spend $4 million on a 40,000-ft surface drilling program, Lac’s involvement means that underground exploration can begin almost as soon as the deal is signed.

The property was previously explored by limited surface drilling and by two underground holes drilled from the Macassa mine at a depth of 5,700 ft.