Total expenditures this year on its two major properties, the former McWatters gold mine near Rouyn, Que., and the Spud Valley gold property on Vancouver Island, B.C. will amount to approximately $7 million, says McAdam Resources President John H. McAdam.
On the McWatters property, McAdam 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 property.
The two companies can earn their interest by each issuing McAdam 200,000 common shares of their capital stock granting McAdam a 5-year option to purchase an additional 35,000 shares at 40 cents per share and each company paying McAdam a total of $130,000 over a 3-year period.
Immediate plans for the property include continued diamond drilling, as well as dewatering of the old mine workings.
This year’s plans for Spud Valley include continued surface diamond drilling with the possibility of some underground work in the summer.
A drill program is currently under way and is aimed at following up a zone where the two holes to date have yielded 0.23 oz and 2.45 oz gold per ton over 3 ft. The first follow-up hole this year has encountered the same zone 260 ft lower and carries visible gold.
At the end of the third quarter ended Nov 30, the company posted a working capital of $191,038, compared to $203,096 at the end of the year-earlier period.
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