Stralak options Mexican gold bet, considers zinc mine

It has been a while, but Vancouver-listed Stralak Resources is back in the news.

This time it has entered into an agreement with a mining company in Mexico to acquire an interest, up to 49% over the next three years, in a 5,000-acre gold property in Sonora State, Mexico.

The property covers several gold- bearing volcanic centres, according to President Edward Blanchard, which have potential to become open pit mines. By spending $20,000 in the next two years, the company’s objective will be to establish reserves of 200,000 tons with widths of 45 ft which can be mined in order to establish the cash flow necessary for more extensive work, Mr Blanchard says.

Expenditures of another $30,000 will give Stralak a 49% interest.

In 1984-85 the company, together with an Alberta-listed junior, Federal Kirkland Mines, carried out extensive drilling on an 11-claim property located in Graig Twp., 30 miles northwest of Sudbury. That work outlined a small, high grade zinc deposit (350,000 tons averaging 8% zinc and 2.5 oz silver per ton).

Several major mining companies made offers to do further work, but Stralak’s directors decided the terms were not good enough. Now management is considering mining the deposit itself by open pit methods at a rate of 400 tons per day and shipping the ore to Noranda Inc.’s Geco mill in Manitouwadge, Ont.

The company will likely raise $1.5 million in flow-through financing this year to evaluate the orebody from underground.