Queries Tyler Resources remaining active

I understand Tyler Resources is active in the LaRonge area of Saskatchewan. Can you bring me up-to-date on the company? C.D. Toronto, Ont.

You’re quite right. Tyler Resources recently acquired an option to earn a 45% interest in two claim blocks controlled by Golden Rule Resources in the La Ronge area. The properties cover geology favorable to hosting gold mineralization similar to that occurring at Star Lake and Mallard Lake, also in the La Ronge area.

Tyler, which is an affiliate of Golden Rule, can earn its interest by spending $250,000 on exploration and issuing 100,000 common shares to Golden Rule. The Saskatchewan Mining Development Corp. (SMDC) holds a 10% interest in the properties.

The latest news from the company is that Tyler has entered into an option agreement to earn up to a 50% interest in the Weedy Lake, Sask., gold project owned 50% by Golden Rule and 50% by SMDC. Drilling to date on the project has outlined a gold deposit of 865,000 tons grading 0.134 oz per ton which is amenable to being developed by conventional open pit mining.

Under the terms of the agreement, Tyler has agreed to fund $1 million in exploration to earn a 25% interest in the project. Upon the completion of this earn-in, Tyler will have the option to fund another $1 million in exploration to earn an additional 25% interest. Upon the completion of the option, the ownership of Weedy Lake will be Tyler 50%, Golden Rule 30% and SMDC 20%.

Tyler says it plans to start diamond drilling in order to extend the known gold deposit on Weedy and to drill test additional targets on the property. It will also conduct tests to see whether or not the gold mineralization will be amenable to low cost heap leaching or vat leaching techniques.

Tyler and Golden Rule are also jointly exploring a 43,000-acre property at Parker Lake for its platinum potential.

To help fund its exploration for both gold and platinum, Tyler has entered into an exploration agreement with Ora Resources whereby Ora will purchase between 400,000 to 600,000 shares of Tyler at a price of $1 per share. The shares will be issued on a flow-through basis and Ora will receive the attendant tax advantages .

Tyler trades on the Vancouver Stock Exchange at the 66 cents level.