Control of Hydra Explorations is passing into the hands of Neptune Resources Corp., which heads a group of investors who are acquiring 750,000 shares from the control block at a price of $1.60 per share, making it the largest beneficial shareholder. The entire Hydra board will be replaced by Neptune nominees, that company’s president, M. K. (Peggy) Witte tells The Northern Miner.
Neptune will also assume all managerial responsibilities of Hydra, including Johnsby’s Colomac gold project in the Northwest Territory. (Johnsby Mines is owned 50% by Hydra and 50% by Discovery Mines.
Neptune is currently undertaking a $5.5 million development program on the Johnsby property to earns a 60% interest which will reduce the Hydra and Discovery interests to 20% each.
Located 137 miles northwest of Yellowknife, this contains a large tonnage low grade porphyry type open pit gold deposit with an indicated 13,000,000 tons grading 0.085 oz, with additional zones currently being investigated.
The 1987 program will include some 40,000 ft of diamond drilling which is already under way to prove up reserves and a pilot vat leach to demonstrate the metallurgical technique which will be used for full scale operation. This is expected to turn out about 700 oz gold late this summer.
When in full operation, leaching will be restricted to five months in the year. But actual mining operations will be carried out on a 12 month basis Ms Witte, who is a metallurgical engineer, says.
The shares of Neptune are listed on the vse while those of Hydra are listed on the tse. Both have been trading actively at sharply higher prices in recent sessions.
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