Cactus plans drill program

With drilling planned for three properties this summer, Cactus West Explorations (VSE) is gearing up for an active season.

At least 40 reverse-circulation holes are planned on the Pamlico property southeast of Hawthorne, Nev. Cactus West can earn a 60% interest in the property by spending US$750,000, and paying US$75,000 plus 300,000 free-trading shares.

A subsidiary of Noramco Mining (TSE), in turn, can earn a 21% interest in the property from Cactus West by spending US$825,000. It can also acquire a further 30% directly from the underlying property owner.

No drilling, and very little modern exploration, has been done on the property, although extensive dump-sampling in 1981 returned an average grade of 0.075 oz. gold per ton.

Drilling is planned on Pamlico Hill (the source of the dumps) and on targets outlined by Noramco’s preliminary work.

Meanwhile, Lac Minerals (TSE) is planning to drill the Bullion Mountain property, also in Nevada. The program is designed to test prospective, lower-plate rocks which underly the property.

Lac can earn a 60% interest in Bullion Mountain by spending US$2.5 million over five years.

In neighboring Idaho, drilling is planned on the Century Gold project. Dunlap Resources, another subsidiary of Noramco, can earn a 60% interest in the project from Cactus by spending US$1 million on exploration by the end of 1997.

Geological, geochemical and geophysical work have outlined three geophysical anomalies, among other drill targets. A large area of anomalous gold, lead and arsenic was also identified.

The property is currently the subject of a dispute with Iron River Resources (VSE), which filed a statement of claim with the Supreme Court of British Columbia seeking an interest. The company claims its property agreement with Cactus was not terminated.

Cactus West disagrees and three separate law firms support its position that Iron River failed to comply with the original property agreement. In spite of the dispute, Dunlap is planning an initial drill program of six holes totaling 5,000 ft.