Noranda dealing with San Paulo Mishibishu ground

San Paulo Explorations has just dealt one of its two gold properties in the Mishibishu Lake area of northwestern Ontario to Noranda Exploration, The Northern Miner learns from Peter D. Walker, the company’s president and chief executive officer.

A 47-claim group, it lies close by the holdings of Central Crude Ltd. which ground Noranda took under option last year and on which it is carrying out an extensive exploration program with encouraging findings.

Under the terms of the San Paulo-Noranda deal, the big firm gets the right to earn up to a 60% interest in this property by spending $1,785,000 over the next three years and making payments to San Paulo of $10,000, $40,000 and $80,000 in the first, second and third years respectively.

Apparently Noranda held this same property some years ago and on which it turned up three sulphide targets, but was forced to drop the claims because of budget restraint. But it will now resume work on this ground, starting immediately.

This is the second significant deal that San Paulo has made recently. In July, it was reported in this paper that the company has teamed up with Teck Corp. as operator to take a new look at the Leitch mine at Beardmore, Ont., a former long-time producer that proved to be Canada’s highest grade gold mine. In this case, though, it is the San Paulo company that will finance the initial $3-million expenditure to earn a 50% interest. That program, too, is scheduled to get started almost immediately.