Ventex spending $1 million for Manitoba gold-silver-zinc bet

Ventex Energy (VSE) has signed an agreement to acquire a 100% interest in the Sylvia gold-silver- zinc property, 75 miles southeast of Flin Flon, Man. The property vendors are Mingold Resources, a private company controlled by Hudson Bay Mining & Smelting (TSE), and Manitoba Mineral Resources, (MMR) a provincial Crown corporation.

Exploration drilling completed by Mingold has outlined reserves of 320,000 tons grading 0.079 oz. gold per ton, 0.85 oz. silver, 0.13% copper and 3.4% zinc. The mineralization is within a volcanogenic massive sulphide zone which strikes for 1,400 ft. and is known to dip to at least 800 ft. The zone remains open along strike and at depth, Ventex says.

A drill hole completed by Mingold 1,000 ft. from the mineralized zone at a depth of 800 ft., intersected 27 ft. grading 3.6% zinc, 0.55% copper, 0.029 oz. gold and 0.97 oz. silver.

Ventex can earn its interest by spending $1 million on exploration by Feb. 28, 1993. Upon the completion of a positive feasibility study, MMR and Mingold will have the option to retain either a 2% net smelter royalty or a 50% participating interest. To exercise the latter option, both companies would have to finance the mine’s capital costs to production.

Mingold and MMR also have the right to buy three million Ventex shares at a price 10% below the 30-day average share price.

Drilling designed to expand the known reserves is in progress. The first hole will try to extend the strike of the mineralized zone 300 ft. further south at the 1,100-ft. level. At this depth, the nearest hole intersected 27 ft. assaying 6.5% zinc, 0.055 oz. gold and 1.5 oz. silver.