Placer, Newhawk, Granduc divide Sulphurets property

The Sulphurets property in northwestern British Columbia has been divided into three parts as a result of the closing of recent agreements among Newhawk Gold Mines (TSE), Placer Dome (TSE) and Granduc Mines (TSE).

Before the agreements closed, the 33-square-mile Sulphurets property was owned 60% by Newhawk and 40% by Granduc.

Newhawk and Granduc still retain their respective interests in the Bruceside area which hosts the West zone gold-silver deposit, but no longer have any interest in the Sulphside area now owned by Placer Dome. Newhawk’s interest in the Snowfield area increased to 100% without any underlying royalties or interests.

This property division came about when Newhawk bought Granduc’s 40% interest in the Snowfield and Sulphside areas for $3.5 million. Newhawk then sold Placer Dome a 100% interest in the Sulphside area for $7.2 million. This portion of the property is considered prospective for deposits similar to Placer Dome’s Kerr copper-gold deposit nearby.

Newhawk received a net $3.7 million from these transactions, which brought its cash position to over $7 million.

Newhawk and Granduc are planning more exploration this year for the Bruceside area, with particular emphasis on the West zone.

Newhawk also hopes a major will be interested in becoming a joint venture partner of the Snowfield area. This portion of the property hosts the Snowfield zone which is considered to have potential to develop into a bulk tonnage, open pit gold deposit. Work carried out last year prompts Newhawk to think that the zone’s ultimate tonnage could be increased from the previously reported reserves of about seven million tons grading 0.075 oz. gold per ton. Newhawk is about to begin initial field examinations this month as part of an extensive program in search of economic mineral deposits mainly in Mexico and the U.S.