Western Troy and Nuinsco launch gold project near Rainy

A letter of intent has been signed between Western Troy Capital (ASE) and Nuinsco Resources (CDN) covering joint exploration of their gold properties near Rainy River, Ont.

Nuinsco holds about 830 claim units and several thousand acres of patented land, while Western Troy controls 215 claim units. Combined, the properties cover more than 40,000 acres.

The Nuinsco ground was acquired from the Rainy River Exploration Syndicate, a group of Nuinsco directors and private investors, in return for 250,000 Nuinsco shares, $25,000 in cash and a 3% net smelter return. Initial exploration will be centered on Troy’s gold discovery in Menary Twp., about 25 air miles southwest of Nuinsco’s Cameron Lake gold property. The discovery consists of six roughly parallel quartz veins which carry visible gold. The arithmetic average of 73 channel-and-grab sample assays from this area was 1.4 oz. gold per ton. The zone was bulk-sampled in 1992 and preliminary results indicate that a 250-ton sample contains about 250 oz. gold (one oz. gold per ton). Troy has also outlined six other gold zones on the property.

Under the agreement, Nuinsco can earn a 49% interest in the Troy ground by spending $300,000 on exploration by Dec. 31, 1993, and incurring an additional $450,000 in expenditures on the combined property holdings by Dec. 31, 1994. At that point, a joint venture would be formed with Troy and Nuinsco, with each holding 49% in each other’s properties.

Troy will operate the exploration program and, should an economic deposit be discovered, Nuinsco has the option to become operator by supplying a 300-ton-per-day gravity mill to process ore.

The joint-venture partnership has yet to be approved by regulators.