Lyon Lake Mines of Rouyn- Noranda has signed an agreement to earn a 50% interest in Mosquito Consolidated Gold Mines’ Mosquito Creek property in British Columbia.
The Mosquito Creek property consists of the mining installations of Mosquito Creek Mines and the mining titles of the former Island Mountain gold mine.
To earn a 50% interest, Lyon Lake must spend $6 million on exploration before Feb 28, 1990.
According to Lyon Lake President Guy Hebert, his company will attempt to establish a relation between the Aurum limestone of the Island Mountain mine which produced 559,528 oz gold from 1,369,8110 tons and the Main Band limestone of Mosquito Creek Mines which produced 34,000 oz gold from 95,700 tons of ore.
Lyon Lake will drive a 3,200-ft adit through the stratigraphy, to reach a former drift at the Island Mountain mine. Drilling and exploration drifting in two limestones is also planned.
Mosquito will put up $1.4 million of the $7.4 million needed to finance the program while Lyon Lake provides the other $6 million.
A feasibility study is planned for early 1989, Hebert says.
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