Placer Dome earns 60% of Melrose property

Placer Dome Inc. has fully exercised its option to earn a 60% working interest in Melrose Resources’ Blackstock Twp., property 30 miles southeast of Timmins, Ont., Melrose announced recently.

So far, Placer Dome has spent $1 million on the property and made aggregate payments of $72,500 to earn its current interest.

Under the terms of an option agreement, Melrose must put up 40% of an $800,000 exploration program which Placer Dome has planned or face dilution.

Melrose says it plans to participate in the program if the funds are available.

Work on the property has consisted of geochemical, geophysical, geological surveys, some 22,000 ft of diamond drilling and 21 overburden drill holes.

Melrose President Peter Hunkin says scattered, low grade gold values, with local concentrates have been intersected in intensely altered pyritized portions of an irregularly shaped, monzonite intrusive.

He said interest in the property was spawned by the discovery of several large pieces of green carbonate float, which assayed as high as 0.78 oz gold per ton.