Royex Gold/Int’l Corona may be operators at Jolu

If current negotiations are successful, Royex Gold Mining Corp. and International Corona will be appointed the operators of the Jolu property in the La Ronge gold belt of northern Saskatchewan.

The negotiations are being held with Mahogany Minerals Resources. In addition, the potential agreement would see Royex and Corona earn a direct interest in not only the 454-acre Jolu property but also in the surrounding claims recently acquired by Mahogany.

In exchange, Royex will relinquish the first right of refusal it currently holds to purchase 650,000 of the 1,064,700 shares of Canadian Premium Resource Corp.

The objective of this agreement, say the companies, is to “bring technical and financial strength to the area that will allow the project to achieve a low cost production at the earliest possible date.”

In the event that an agreement is not reached, Royex will have until Sept 1 to exercise its first right of refusal.

These negotiations follow on the heels of an agreement signed between Mahogany, Canadian Premium Resource Corp. and Royex allowing Mahogany to purchase 1,064,700 shares of Canadian Premium currently held by Murray Pezim and Arthur Clemiss.

The purchase price for the shares is $1,996,312.50 and the issuance of 532,350 treasury shares of Mahogany.

The agreement, subject to regulatory approval, is to be completed by Nov 13. In the event that the agreement is not completed, the vendors will retain a nonrefundable deposit of $200,000.

To date, Bechtel Civil & Minerals of San Fransisco have calculated ore reserves at Jolu to be 920,000 tons at an average grade of 0.61 oz of gold per ton. A $1.5-million exploration program is currently under way on the property in order to prove up enough reserves for a production decision. (N.M., July 28/86).