Garrison gold project work continuing under new venture

Exploration and mining will continue on the Garrison gold property, 24 miles east of Matheson, Ont., following a joint venture agreement between Perrex Resources (ASE) and GSR Mining, a subsidiary of Deak Resources (TSE). Under the terms of the agreement, Perrex has the option to earn up to a 50% interest in the 106-claim property, subject to certain undisclosed conditions. Formerly owned by Toronto-based Silverside Resources (TSE), the property hosts a preliminary reserve of some 452,000 tons grading 0.15 oz. gold per ton.

A reserve of at least 50,000 tons grading 0.18 oz. is being mined from an open pit and trucked about 50 miles to Deak’s Kerr mill in Virginiatown, Ont. Deak purchased a controlling interest in the property last autumn for $705,000.

In the early ’80s, Kerr Addison Mines (TSE) extracted 65,000 tons grading 0.14 oz. per ton from a small pit on the property’s West zone. Deak intends to explore for additional reserves to both the east and west of the Kerr pit. To date, mineralized zones on the property have been tested to a depth of not more than 500 ft.

Perrex and its associates hold about 1,100 claims just south of the Porcupine-Destor fault zone, which hosts American Barrick Resources’ (TSE) Holt-McDermott mine and Noranda Exploration and Freewest Resources’ (TSE) Harker-Holloway property.