Associated companies Hemlo Gold Mines (TSE) and Brenda Mines (TSE) recently agreed to buy 186,567 shares of Yellowjack Resources (VSE) in order to exercise an option to acquire a 51% interest in Yellowjack’s Katie copper-gold property near Salmo, in southern British Columbia.
The property is accessible by logging roads and is near all necessary infrastructure, including power and a railway line.
Noranda Exploration recently completed a drill program on the property which returned low-grade copper-gold mineralization over considerable thicknesses. Among the better results were two holes drilled about 2,296 ft. apart which intersected 434.9 ft. grading 0.22% copper and 0.009 oz. gold per ton and 221.5 ft. of 0.32% copper and 0.009 oz. gold.
In view of results from this program, a fall exploration program is being planned that will involve drilling as well as gridding, magnetometer, IP, soil geochemical and geological surveying.
Once the share purchase is complete, Hemlo Gold will hold a 28.34% interest and Brenda Mines a 22.66% interest in the Katie property. Yellowjack will retain a 49% interest.
Hemlo Gold and Brenda will spend a total of $250,000 to buy the Yellowjack shares valued at $1.34 each. A total of $593,753 has been spent to explore the Katie property to date.
Brenda Mines recently closed its copper mine in southern British Columbia, and has since been evaluating new mining projects.
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