Loubel acquires Lemoine gold property

Loubel Exploration (LBX-M) has boosted to 100% its interest in the Lemoine gold property, on the southern flank of the Chibougamau pluton in northern Quebec.

For its additional 50% interest, Loubel will pay a subsidiary of Australia’s Western Mining Corp. an aggregate of $100,000, as well as grant WMC a 2% net smelter return royalty redeemable for $2 million upon commercial production.

Loubel acquired its previous half interest from Quebec Crown corporation Soquem, in return for 500,000 Loubel shares plus $1 million paid over four years from the start of commercial production. Loubel has also eliminated an obligation to spend $265,000 on exploration work before Dec. 31, 1998, and $500,000 before October 1999.

Between 1993 and 1997, Soquem spent more than $1.2 million on the property, performing geophysical surveys that were complemented with several stratigraphic drill holes.

The Lemoine mine is a former producer, and, from 1973 to 1985, it exploited a volcanogenic-massive-sulphide deposit, producing 758,070 tonnes grading 9.6% zinc, 4.2% copper, 4.54 grams gold and 83.83 grams silver per tonne. Loubel plans to target all extensions of Lemoine’s 12.5-km exhalative horizon.