Pezim group to share in Opapimiskan Lake project

Vanvouver stock promoter Murray Pezim is spending $2.5 million to earn a slice of one of the most promising exploration properties in the Pickle Lake area of northwestern Ontario.

Through Prime Capital subsidiary Ravenroc Resources (VSE), Pezim has agreed to make a $250,000 cash payment and spend $2,300,000 during the next four years to earn a 50% interest in the Opapimiskan Lake property from Power Explorations (TSE).

The property is currently held on a 75-25% basis respectively by Power and partner Moss Resources (VSE).

Located next door to the Snoppy Lake/East Bay deposit where partners Placer Dome Inc. (TSE), Esso Minerals, Inco Ltd. (TSE) and Lacana Mining (TSE) has reserves of six million tons grading 0.2 oz, Opapimiskan is regarded as the prime exploration play in the Moss Resources Ltd. (ASE) portfolio of properties.

Moss Resources Ltd. is the product of an amalgamation involving Moss Resources and affiliate Van Horne Gold Explorations. After picking up a number of properties in the Pickle Lake area during the past five years, Moss and Van Horne opted to join forces recently. Van Horne

The new entity was formed on the basis of a 1 Moss Ltd. for 1 Moss Resources and 1.1 Moss Ltd. for 1 Van Horne share swap and has issued capital of over 5.8 million common shares and 30,000 Class A preferred shares.

“The two companies have common interests, directors and shareholders and it’s much easier to run one company instead of two,” explained Moss President Harry Hodge.

Moss assets include varying interests in 28 properties in the Pickle Lake, Opapimiskan Lake, Dryden and Beardmore areas and investments worth $2.12 million. It is the principle shareholder in Power Exploration (16.5%), Oracle Resources (ASE) (23%), and with Power it holds a 17% interest in Canadian Futurity Oils and Gas Ltd.

“We expected the government to wind down the flow-through financing mechanism this summer,” said Hodge who has successfully raised $12 million in flow- through dollars for exploration on a number of properties.

“In a bid to raise around $16 million to develop commercial reserves on six properties, Hodge will look for partners to form a series of joint ventures. While the Ravenroc agreement is the first to be tabled so far, Hodge is also involved in negotiations with a number of off-shore companies. They include an unnamed Australian outfit. Snoppy Lake

Since Opapimiskan and Snoppy Lake deposits occur in the same band of iron formation Hodge is anticipating some good drill results from the Ravenroc/Power joint venture.

During some 45,000-ft of diamond drilling at Opapimiskan Lake, operator Power Explorations has already delineated three identifiable gold zones contained within anticlinal folds, Hodge said. Assay results included 9.2 ft grading 0.445 oz gold per ton and 16.5 ft grading 0.68 oz and 5 ft of 0.1 oz.

Under the agreement, after Ravenroc has fulfilled its financial commitments, the two companies will revert to a 50-50 joint venture.

In other news, Moss Ltd. is preparing to forge ahead with exploration at the Randall Lake property where previous exploration has outlined a major shear zone of sulphide mineralization along a 7,000- ft strike length.

Located 50 miles northwest of Opapimiskan Lake in the North Cariboo River fault, it is a “super duper structure” which has hardly been tested yet, said Hodge.