Northfield plans exploration of California gold property

Privately owned Canyon Mineral has granted Northfield Minerals (ASE) an option to explore and develop the Chuckwalla gold claims, 25 miles west of Blythe in Riverside Cty., Calif. In return, Canyon receives US$15,000 cash.

The 2,500-acre property, on the north flank of the Chuckwalla Mountains, has been worked for gold since the early 1800s. Lode mining was employed between 1900 and 1930. According to Northfield, the geological and structural setting is identical to the Mesquite mine of Gold Fields Mining and the Castle Mountain mine of Viceroy Resource (TSE). Both are 25 miles to the south.

Northfield can extend the option for one year beginning Sept. 1 by paying the U.S. Bureau of Land Management $200 per claim on Aug. 31.

Northfield may acquire a 100% interest, subject to a 5% net smelter return, by paying US$200,000 before Dec. 2, 1994. The claims will also be subject to an annual advance royalty of $50,000 payable in cash or stock, beginning on the fourth anniversary of the acquisition of title.

Company director Dale Hendrick has been granted a 25% interest in the claims, subsequent to Northfield acquiring title, in consideration for expenditures on the claims.

In other news, Northfield continues to mine ore from the C zone at the Cheminis mine near Larder Lake, Ont. The mine is producing 200 tons per day and, by the third quarter, this will be increased to 400 tons. Ore is custom-milled at Deak Resources’ (TSE) Virginiatown mill, three miles to the east.