Sharpe Energy deals with Crude at Mishibishu (June 12, 1989)

While still to be finalized, this junior company has entered into an option agreement with Central Crude under which it could earn a 49% interest on 60 claims in Groseilliers Twp., tying on to the immediate east of Crude’s main Eagle River property now being developed underground in a joint venture with Hemlo Gold Mines (TSE).

The agreement calls for the Sharpe firm to pay Crude’s staking costs and 200,000 shares of treasury stock, with a commitment to spend $250,000 per year for three years. This property is subject to a sliding royalty of 2% to 3 % net smelter return.

An airborne electromagnetic survey carried out on this ground showed a series of structural anomalies which require follow-up. Initial prospecting has shown the presence of gold mineralization in four quartz vein systems and a new work program is being prepared, President Walter Sharpe told The Northern Miner.

R. E. Nemis and Noble Harbinson, president and vice-president respectively of Central Crude, will be going on the Sharpe company’s board. While it has cash on hand of about $245,000, plans are already afoot to raise additional funds for this particular project, Sharpe says.

Sharpe Energy also holds a 300-claim gold play in Newfoundland which was the subject of much work last year. The company hasn’t given up there, Sharpe emphasized, and he says there is a good chance that one of the major companies active in the area will participate in future exploration.

]]>