Royal Oak can earn in at Willoughby

The potential of the Red Mountain area near Stewart, B.C., is being eyed by Royal Oak Mines (TSE).

In addition to picking up the Red Mountain property from Barrick Gold (TSE) in exchange for a $3-million work commitment, Royal Oak has gained the right to earn up to a 35% interest in the nearby Willoughby project from Gold Giant Minerals (VSE).

The Willoughby is a 50-50 joint venture between Gold Giant and Camnor Resources (VSE). Royal Oak can initially earn a 25% interest by paying $750,000 to Gold Giant towards exploration on the property. A further financing of $1 million would entitle Royal Oak to an additional 10%.

Camnor maintains its half interest and will continue to operate the project.

Current underground work involves advancing a 330-ft.-long adit on the North zone and excavating five drill stations.

Underground drilling is scheduled for spring, 1996.