QUERIES Fort Knox report due next month

As a regular subscriber to The Northern Miner, and a registered shareholder of Fort Knox Gold Resources, I am curious to know why I have not received an interim report from the company. Rumor has it that they are involved with Inco but I have been unable to establish whether or not this is true. A.M. Thornhill, Ont.

In a bid to get an update on this company, The Northern Miner placed a number of calls to Fort Knox Gold Resources’ offices at Suite 601, 10 King St. in downtown Toronto.

Last week, we were able to reach Fort Knox President Clarke Campbell who reveals that illnesses have prevented his company from releasing its financial results for the period ended June 30.

Those results will be published in an annual report scheduled to be released in mid-December, Campbell says.

As you are probably aware, Inco Ltd. had a 26% equity interest as well as board representation in Fort Knox when the company was encorporated in 1984 but Inco’s interest has since dropped to around 17%.

Under an agreement with Inco subsidiary Canadian Nickel Co. Ltd. (Canico), Fort Knox is currently earning its way into two properties: the 329-claim Crow Lake project at Kakagi Lake in northwestern Ont., and the Pettigrew Mine prospect 35 km northwest of Atikokan, Ont.

On Nov 12, a team of Fort Knox executives met with officials from Inco’s exploration department. According to Mr Campbell, he listened to a number of recommendations for future work on the Pettigrew and Crow Lake properties.

After issuing 500,000 shares and spending $400,000 to fund an exploration program supervised by Canico, Fort Knox now holds a 28% interest in the Crow Lake project. The company can increase its share of Crow Lake by 1% for each additional $50,000 spent on exploration but it must receive permission from the Toronto Stock Exchange before doing so.

Canico had encountered a gold zone extending over a 1,400-m strike length after drilling nearly 3,000 m in 17 holes. The zone appears to be open east and west along strike.

Under the terms of a second agreement with Canico, by spending $750,000, Fort Knox can earn a 40% interest in the Pettigrew mine project where Inco has also completed a 5-hole drill program totalling about 400m, as well as a vlf survey.

Underground dewatering, geological mapping and sampling of the No 2 shaft and the 30-m level drift have also been completed.

According to the company, an underground sampling program did not confirm the 0.298 oz gold per ton over 21.4 m, previously reported by Sylvanite Gold Mines in 1940.

However, it did discover highly anomalous gold values associated with a parallel structure to the main northeast-southwest trending gold- bearing Pettigrew structure a further 500 m northeast. The next phase of exploration involves a 2,000-m drill program. Pettigrew Project

Fort Knox won’t attain 40% of Pettigrew until it completes an option to earn 15% by spending $100,000, an additional 15% by spending another $250,000 and another 10% through a $400,000 expenditure.

However, Mr Campbell says the Pettigrew project will be “put on ice” while the company concentrates on developing its Crow Lake venture.

“Crow Lake looks like a very intriguing project but it will take a lot more money to prove that.” He said a more comprehensive report of the company’s activities will be published in the soon-to-be-released annual report.

In other news, Fort Knox has optioned its Casa Berardi-area property 10 miles northeast of Joutel, Que. to Duncan Gold Resources which has right to earn 50%. by spending $400,000 by 1988.