Stockmen looks for gold at Quebec iron prospect

After entering an agreement to buy a large iron property in Delestre, Que., Calgary-based Stockmen Minerals says it has set out to examine the prospect for possible gold reserves.

Located 35 km north of Senne terre adjacent to the Senneterre- Chibougamau Hwy., the 25-claim property was previously explored by Freeport Sulphur. As a result, Freeport outlined a sulphur-iron deposit containing reserves of 13.5 million tons, grading 25% sulphur and 37% iron.

Under an agreement, Stockmen will pay the vendor 200,000 common shares worth $40,000. The vendor will also retain a 2% net smelter royalty on the claims.

Several drill holes in the massive sulphide orebody were assayed for gold with the best values reported as 0.53 oz gold per ton over 2.5 ft in Hole 11 and 0.46 oz over 2.5 ft in Hole 12.

To evaluate the economic potential of the gold zones, a program of line cutting, geophysical surveys and a 4,000-ft diamond drill program has been proposed.

At a cost of $180,000, the program is expected to get under way this week, says President William Petrie.

Scrimshaw Management is also scheduled to receive a 5% finder’s fee, payable in shares of Stockmen on the transaction, Petrie says.