Placer Dome picks up interest in Jualin property near Juneau

An agreement in principle has been concluded which will allow Placer Dome to earn a 50% interest in the property from International Curator Resources (VSE) and Pecos Resources, a wholly-owned subsidiary of Granges Inc. (TSE).

Granges, which has been working hard to solve problems at its Tartan Lake mine in Manitoba and at the Crofoot/Lewis mine in Nevada, appears destined to pull out of Jualin. Pecos has granted International Curator an option to purchase its 40% interest in the property for a maximum of $2.5 million. Granges, which owns Pecos, will receive 50,000 shares of International Curator in consideration for the option.

By exercising the option on the Pecos 40% interest, International Curator would tidy up ownership of the property, making it easier for the respective participants to raise production financing if a mine was feasible. More than $3 million has been spent on the property since it was acquired by International Curator in 1987, mostly on mapping, drilling, and construction of an all- weather road from Berners Bay to the drill site.

Drilling to date has outlined a reserve of 1.1 million tons grading 0.4 oz gold or 0.31 oz cut. This consists of 237,766 tons classified as indicated and 809,330 tons categorized as inferred, all grading the same as the combined reserve. Exploration activity has focused on the Jualin shear zone which extends for some 10,000 ft along strike, is 400-600-ft wide, and consists of at least six distinct shears hosting numerous gold-bearing quartz veins. These veins range in thickness from 5-20 ft with stockwork zones locally exceeding 40 ft.

Placer Dome’s initial program will concentrate on expanding the present mineral inventory by testing the structure down dip, along strike and exploring other targets. Of particular interest is the Big Lake zone from which 20 chip samples along 1,200 ft of an estimated 3,000 ft of strike length yielded an average grade of 0.45 oz gold per ton. The work program is scheduled to begin immediately.

Placer has also taken an option on International Curator’s Dream property located in the Juneau area. To earn a 60% interest, the company will have to spend approximately $1.7 million(US) by March 15, 1992 and purchase $200,000(C) worth of shares.

The Juneau area has attracted a number of major companies including Echo Bay Mines (TSE) and Coeur d’Alene Mines (Amex). Last year they drove a 5,200-ft tunnel on their Kensington property, most of which was devoted to reserve delineation along the Kensington vein. This year’s budget is expected to be almost $13 million which could bring the property to feasibility.

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