Tashota Nipigon, Quinteko invest in McWatters bet

McAdam Resources has invited Tashota Nipigon Mines and Quinteko Resources to each earn a 25% interest in McAdam’s right to earn a 100% interest in the McWatters gold property in northwestern Quebec.

Both of the companies would have to pay McAdam 200,000 shares plus an option to buy a further 35,000 shares at 40 cents . They would also have to pay McAdam $30,000 upon signing and a further $100,000 in six payments before the end of September, 1989.

As well, both Tashota and Quinteko must spend $250,000 on exploration by the end of February. McAdam will act as operator.

The McWatters gold property is located on the Larder-Cadillac break about six miles east of Rouyn. Previous operators reported reserves of up to about 431,000 tons grading 0.193 oz gold per ton. The McWatters was a former operating gold mine having produced over 100,000 oz at a grade exceding 0.3 oz.

McAdam has also invited Tashota to earn a 25% interest in the Spud Vally gold property on Vancouver Island. To earn its interest, Tashota must spend $600,000 on exploration with McAdam acting as operator.

Spud Valley is a former producing mine which turned out 54,000 oz at a grade of about 0.29 oz. Reserves are currently estimated at about 429,000 tons grading 0.25 oz.