Penway seeks financing for Canada/U.S. projects

Alberta-listed Penway Explorers is currently negotiating a flow- through financing agreement to raise $1 million for exploration at its Labrador Trough property near Schefferville, Que.

The Toronto company is also attempting to raise $500,000(US) to earn a 50% interest in a couple of Nevada-based low grade precious metal properties which it says could be brought to production within six months.

The Nevada gold/silver properties are the Diamond Silverado prospect near Eureka, and the Quartz Mountain bet 50 miles north of Tonapah. According to Penway, a recent study has indicated that the Diamond Silverado prospect hosts over 60 million tons grading 0.02 oz gold per ton and 0.4 oz silver.

“We won’t have to spend very much before we can start a 500-ton- per-day heap leaching operation at Diamond Silverado,” said President A. B. Whitelaw, who estimates a gross operating income of $2.2 million annually from the operation.

While reserves at the Quartz Mountain property have yet to be delineated, Whitelaw says this old silver mine could also be rehabilitated within six months.

Under the terms of a payback agreement, a number of California and Nevada-based investors will retain an unspecified carried interest in both properties over five years, Whitelaw says.

Penway has optioned a 65-km property near Schefferville from La Fosse platinum on a 100% interest basis subject to a 1.5% net smelter royalty payable to La Fosse.

According to Penway, a La Fosse sampling program indicated that platinum and gold may be present in economically viable concentrations in the South Trough region.

In the Retty Lake area, the Blue Lake deposit contains approximately 506,400 tons of 0.85% copper per ton and 0.41% nickel, while the Pogo lake deposit was indicated at 692,600 tons of 1% copper and 0.65% nickel.

In the Ahr Lake area, Penway says the Chance Lake deposit is estimated to contain 500,000 tons of 0.66% copper and 0.89% nickel.

While La Fosse is currently exploring three platinum zones on an adjoining property, an engineering report recommends that Penway carry out a $793,000 2-stage exploration program to evaluate the property.

Penway’s other interests include a large block of claims in a relatively unexplored area near Black Trout Lake in the Wawa, Ont., mining camp.

Located in Bailloquet Twp. the claims extend north and south of Black Trout Lake in an area split by Highway No 7. According to geologist William Morrison, Penway is currently carrying out preliminary work for a geological survey of these claims.