Galico, Noront strike deal for Hurdman exploration

Vancouver-based Galico Resources (VSE) and Noront Resources (VSE) have reached an agreement to finance further exploration on the Hurdman Twp. property, 45 miles northwest of Cochrane, Ont.

To earn a 55% interest in the property, Galico must make a onetime cash payment of $20,000, issue 100,000 shares to Noront and spend $2 million on exploration over a 3-year period.

Noront’s recent drilling at Hurdman Twp. intersected 2.41% zinc over 44.3 ft. and 3.1% zinc over 59.7 ft. at shallow depths (T.N.M., Jan. 20/92). The high-grade metamorphic rocks that host the mineralization have been compared to those found at Noranda’s Geco deposit at Manitouwadge, Ont. Secondary roads provide access to the property from the Trans-Canada Highway and the Northland Railway passes within 12 miles to the east. The Kidd Creek smelter lies 65 miles to the southeast.

If the property reaches production as a base metal mine, Don McKinnon, the original vendor, will receive a 15% net profits interest. If it becomes a stand-alone gold deposit, McKinnon will be entitled to a 2% net smelter return royalty.

Galico, through Prime Explorations, will be operator during the earn-in and any subsequent exploration unless its interest in the property falls below 50%. Prime Equities (VSE) has a 43.4% interest in Galico.