Fort Knox plans program on two Ontario gold bets

A $250,000 exploration program is slatted by Toronto-listed Fort Knox Gold Resources on the Crow Lake property, southeast of Kenora, under the supervision of Inco Ltd.

The program on the 329-claim property will consist of an IP survey followed by diamond drilling. Inco has already spent $850,000 on the property so far including a number of geophysical surveys and 17 drill holes.

These drill holes averaging 500 ft in length have identified a 200-ft wide silica carbonate shear zone carrying anomalous gold values. One hole drilled below a surface trench assaying 0.17 oz gold per ton over 10 ft intercepted 1.2 ft of core creating 2.8 oz gold per ton.

By making this $250,000 expenditure before Feb 28 and by the issue of 500,000 shares of its capital, Fort Knox can earn a 25% interest in the Crow project. For each additional $50,000 of expenditure the company can earn an additional 1% to a maximum aggregate of 40%.

Fort Knox can also earn a 15% interest in the Pettigrew mine project, in Ramsey Write Twp, northwest of Atikokan, Ont. by spending $100,000 in exploration before the end of this February.

A program of underground exploration is proposed on this 37-claim property including dewatering the shaft, further mapping and sampling with limited geophysics followed by diamond drilling on the surface.

Fort Knox has an option to earn an aggregate 40% in the project by the expenditure of $750,000.

The minimum commitment by the company is to issue 500,000 shares to Inco and expend an aggregate of $350,000 in Canadian Exploration Expense. Further expenditures would depend on the results of the initial exploration period.

At Fort Knox’s Casa Berardi-area property located about 10 miles northeast of Joutel, Que., visible gold has been found in reverse circulation drilling samples.

A diamond drill program has been recommended by project manager Inco and a drill is expected to be on the site shortly.

Duncan Gold Resources is funding the exploration and can earn a 50% interest in the property by spending $400,000 by 1988. To date, Duncan has spent $117,000.

At present, Inco has a 17% interest in Fort Knox, which trades on the Toronto Stock Exchange at about the 66 cents level.