NEWS ROUNDUP (November 18, 1991)

An agreement has been entered into by Globex Mining Enterprises (ME) and Fairfield Explorations (ME) whereby Noranda Exploration, a unit of Noranda (TSE), may earn a 60% interest in their claim blocks hosting the Margry-Le Tac base metal discovery in northwestern Quebec.

To earn its interest, Noranda must spend $5 million on exploration work during a 5-year period and make cash payments totalling $850,000. Claims owned privately by Geoconseil Jack Stoch Ltee are also covered by the agreement, which is subject to regulatory approval.

Globex and Fairfield have retained the right to repurchase a 10% interest for $1 million. Failing that move, the juniors will enter into a 40-60 joint venture arrangement with Noranda.

Globex has a 100% interest in 40 claims covered by the agreement and Fairfield has a 100% interest in 24 adjoining claims.

Financing of about $4.5 million is being sought by Jarvis Resources (VSE) for the second phase of its development plan for marble quarries near Sudbury, Ont.

The property consists of 23 claims. In addition, the company will work five adjacent leased claims. The company hopes to operate its own cutting and polishing plant in the Sudbury area.

The second phase will involve the purchase of land, buildings and equipment, installation costs and startup operating capital. During the completed first phase of the operation, the company, among other activities, obtained 5-year aggregate permits, developed quarry faces and extracted blocks that will be retained for eventual processing by Jarvis.

Shortly after acquiring the Louis Lake copper-gold porphyry property for 200,000 shares and $25,000, New Canamin Resources (VSE) has optioned the property to Equity Silver Mines (TSE).

Equity can earn a 70% interest in the property by spending $250,000 on exploration. The company is expected to begin a program in early 1992. The property, 35 km west-northwest of Smithers, B.C., is accessible by road and short skidder trail.

Previous work by Canadian Superior Exploration in 1970 identified a large IP anomaly extending over 2,700 metres across the property. Copper-gold mineralization was identified by trenching and diamond drilling on a small portion of the anomaly with the best values on the edge of the highest IP response.

Preliminary estimates at the time put reserves at 18 million tonnes grading 0.3% copper and 0.3 grams gold per tonne. The mineralized zone remains open to the south and north.

Noranda Exploration, on behalf of Hemlo Gold (TSE), has commenced preliminary exploration work on the Mexican gold property held jointly by Jonpol Explorations (TSE) and T&H Resources (TSE).

Hemlo can earn up to 71% in the La Viruela-La Cruz property by paying T&H and Jonpol $2.2 million and spending $700,000 on exploration. Initial work, including rock geochemistry and reverse circulation drilling, is designed to examine a number of anomalies outlined previously by BHP-Utah International. The property is about 150 air miles southeast of Hermosillo in the Mexican state of Sonora.

Meanwhile, at the Garrison Twp. property in northern Ontario, Jonpol and T&H are planning to spend $300,000 by year-end to look for a faulted extension of the Main zone at depth. So far the companies have outlined about one million tons of 0.18 oz. gold per ton to a depth of about 1,000 ft.

With financial assistance from the Ontario government, the joint venture has started a 2,800-ft. hole and expects to drill four more before Christmas.

Wye Resources (CDN) has intersected some encouraging gold values at its Saganaga Lake property, 140 miles west of Thunder Bay, Ont.

Hole 91-05, collared on the southern portion of the Star zone, hit several shallow mineralized intervals with a combined true width of 22 ft. averaging 0.20 oz. gold per ton.

Wye says the surface expression of the mineralized zones indicate a strike length of 1,200 ft. and a width of 100 ft. Mineralization is open at depth and to the east and west.

At the Powell showing, about 1,600 ft. southeast of the Star zone, Wye intersected narrow, high-grade veins averaging up to 0.48 oz. gold over 2.6 ft.

Wye has stepped back 70 ft. to test the Star zone at depth. The company has also purchased 12 claims on the eastern strike extension of the mineralized zones and is moving a small test mill to the site in order to determine gold recoveries.

By the end of November, Cusac Industries (VSE) hopes to have completed a due diligence review of the Table Mountain gold project near Cassiar, B.C., a former producer in which it holds a 30% net profits interest.

The junior is currently involved in negotiations with Total Energold (TSE) aimed at increasing its interest in the property to 100%. Cusac is also looking to acquire Total Energold’s 300-ton-per-day mill and all equipment available to the project.