Following a decision by Noranda Exploration not to exercise an option on the L.H. gold property near Silverton, B.C., Andaurex Resources of Toronto says it will retain a 100% interest in the property.
Under a previous agreement, Noranda was scheduled to spend $1 million over three years to earn a 60% interest. The agreement also allowed Andaurex to maintain a 40% participating interest or carried 20% interest when Noranda fulfilled its commitment.
But after spending $450,000 on preliminary work and some deep drilling, Noranda elected to pull out of the venture.
Located one km from Northair Mines’ Willa gold prospect where a 300-ton mill is being installed, the L.H. property contains two gold deposits — the tunnel zone and the breccia zone — which lie about 1,500 ft apart.
Andaurex says gold values at the tunnel zone are associated with linears in north-east trending intermediate volcanic rocks. Channel sampling in the backs of the tunnel averaged 0.28 oz gold per ton over 220 ft. The width of the zone varies from two to 20 ft.
To test a geochemical anomaly at the Silverton property, Noranda also drilled a 2,100-ft hole which intersected 4.7 ft grading 0.44 oz.
According to Andaurex, the breccia zone is a broad area of silicified agglomerate and tuff which is highly fractured with numerous quartz veinlets containing pyrite and arsenopyrite. Significant drill holes at this zone include hole No 3 which assayed 0.33 oz across 46.2 ft.
During 1988, Andaurex plans to spend around $500,000 to drill out the breccia zone. President Paul Hammond says he will also consider offers from possible joint- venture partners.
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