Sunmist Energy ’86 Inc. reports it will carry out a diamond drill program on its newly-acquired Keeley- Frontier property in South Lorrain Twp., near Cobalt, Ont.
Sunmist says it purchased the property for $150,000 and 750,000 common shares, with the vendor retaining a 5% net smelter return royalty on production from the property, up to a cumulative maximum of $525,000.
The property includes the former Keeley and Frontier mines, which Sunmist says are reported to have produced 19,197,000 oz silver, and 3,310,000 lb cobalt.
Work is continuing on two other projects, one in the Northwest Territories, the other in northwestern Ontario, Sunmist says.
In the first, field work is going ahead on the Eric Lake gold project near Eskimo Point. About 400 samples of glacial till have been collected, covering close to half of the 20,000-ha property. Diamond drilling will resume early in October, the company says.
Work is also continuing, under a working option arrangement with Canreos Minerals (1980) on Sunmist’s gold prospect in Brackin Twp., Ont., just north of the Renabie gold mine.
Canreos is spending $300,000 on exploration and development, to earn a 60% undivided interest in the property.
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