NEWS ROUNDUP — Deak adds reserves to the Kerr mine

Exploration and development have resulted in increased reserves at the Kerr mine in northeastern Ontario.

Past estimates of 2.2 million tons at 0.124 oz. gold per ton have been augmented by 459,000 tons grading 0.107 oz.

Cyprus Canada intends to continue underground drilling of four large, gold-bearing structures traced below and on surface. To earn interests in these zones, it must spend $4 million on exploration by March 1, 1997. The mine, situated near Virginiatown, is operated by Deak Resources (TSE).

In other news, Deak and Yorbeau Resources (TSE) have decided to terminate an option agreement on the Astoria mine project in Rouyn-Noranda, Que. Yorbeau will have the right to up to 45,000 tons of ore from Astoria, which will be milled by Deak at the Kerr mill for $17.90 per ton.

Regarding a $200,000 promissory note which it issued last year, Yorbeau can accept as payment (and at Deak’s option) one million Deak shares at 20 cents each. Deak can redeem half the shares at 20 cents, up to the first anniversary of their issuance.