Wilco and Minnova Inc pool Shebandowan claims

Wilco Mining of Toronto and Minnova Inc. say they plan to pool properties held by both companies under option agreements with prospectors David Petrunka and Wayne McChristie.

Under a joint venture agreement, when the partners spend $1.25 million on exploration Minnova (as operator) will earn a 60% working interest in the claim group while Wilco retains 40%.

Located 60 miles west of Thunder Bay, Ont., near Upper Shebandowan Lake, the combined properties add up to about 10,000 acres and are comprised of 243 unpatented claims.

Residual interests in the two mining locations (measuring 397 acres), containing the Vanguard copper prospect, were bought by Wilco from Montreal-based Green Coast Resources.

According to Wilco President Douglas Hume, the mining locations were originally held under option by the prospectors who had assigned their working interest to Wilco.

He says consideration for the option is an initial cash payment plus 100,000 treasury shares of Wilco. Exploration programs may be accelerated or staged at an annual rate of $250,000 in exploration work and a cash payment to the prospectors as well as payment of 50,000 treasury shares of Wilco.

At the option of both Wilco and Minnova, at any time within the 5-year option period, they may purchase the prospectors entire interest in the claim group by payment of an aggregate of 250,000 treasury shares of Wilco and $150,000 in cash.

Hume says $1 million in exploration and development work must also be completed. The vendors retain a 2% net smelter royalty, subject to a partial buy-back provision.

The Vanguard prospect was explored for copper in the 1940s and 1950s. Mineralization occurs, according to Wilco, in a chart horizon that has been traced for about 4,000 ft.

Past drilling produced unusually high gold assays in a hard glassy mineral called chert, providing the impetus for re-examination of the property.

Recent sampling of old showings has produced high values in copper/zinc and silver together with significant gold.

Minnova and Wilco geologists view the sulphide zones in the chert as volcanogenic and will explore the Vanguard prospect for polymetallic massive sulphides.

Hume says a number of other sulphide and gold showings occur within the 10,000-acre claim group. Exploration work is expected to get under way with a few weeks, he says.