Santa Fe to fund work on Radisson projects

A joint-venture agreement has been formed between the Canadian subsidiary of Santa Fe Pacific Gold (NYSE) and Radisson Mining Resources (ME) concerning three of the latter’s gold properties in northwestern Quebec.

During the 5-year option period, Santa Fe will provide Radisson with $2 million to spend on exploration at the junior’s Duquesne, Lepine and Destor properties in Destor Twp. In addition, Radisson will receive $200,000.

If the option is exercised, Santa Fe will have earned a half interest in the projects.

Recently, Santa Fe and Montreal-based Globex Mining Enterprises (ME) carried out preliminary drilling on their Duquesne West property, which adjoins Radisson’s three properties in Destor Twp. The work confirmed the property hosts 565,886 tons averaging 0.39 oz. gold per ton, and Radisson hopes the mineralization uncovered will be traceable onto its three neighboring properties.

Elsewhere, at the O’Brien mine property in Cadillac Twp., the first hole of Radisson’s planned 40-hole, 40,000-ft. drill program has intersected high-grade gold mineralization at depth.

The hole, which was collared 2,000 ft. east of the main shaft, cut three intercepts at a downhole depth ranging from 1,140 to 1,335 ft. The first intercept averaged 0.16 oz. over 3 ft. at a depth of 1,130 ft.; the second averaged 0.87 oz. over 21.5 ft. (including 15.87 oz. over 1 ft. and 0.67 oz. over 3.5 ft. at a depth of 1,286 ft.); and the third averaged 2.03 oz. over 2.5 ft. at a depth of 1,335 ft.

The O’Brien property, a former producer, is owned by Breakwater Resources (TSE).

Radisson can earn a 50% interest in the property by spending $3 million by the end of February 1999, and issuing 500,000 of its shares to Breakwater.