Onitap, Orex deal

A formal agreement has been completed between Onitap Resources (TSE) and Exploration Orex (ME) which gives Orex the right to earn a 50% interest in Onitap’s Goldboro property in Nova Scotia.

Orex can earn the first 25% interest by spending $6 million on exploration before June 30, 1989. Another 25% can be earned by spending an additional $6 million to bring the project to final feasibility by Dec 31, 1990.

Based on a 40,000-ft drill program completed in 1987 and early 1988, Onitap has calculated reserves of 1.1 million tons grading 0.194 oz gold per ton. The mineralized zones remain open in all directions.

A definition drill program is planned which will be complimented by underground exploration. A decline ramp will be driven to the 200-ft and 400-ft levels. Also, the partners plan to dewater an old 450-ft shaft and deepen it to 900 ft which will provide access to the lower levels of the mineralized zones.

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