Cdn. Mining options Lynx Lake

An option agreement enables Canadian Mining Resources (ASE) to gain a stake in the Lynx Lake gold property held by Leeward Capital (VSE).

Canadian can earn a 40% working interest by issuing 50,000 shares and spending $200,000 by March 1, 1997. It can earn an additional 10% by issuing another 50,000 shares and by spending an additional $100,000 by March 1, 1998. The junior will start a 10-hole drill program to test the A-1 shear in early February. The structure, one of four targets hosted in the Contact Lake pluton, has yielded values of up to 0.56 oz. gold per ton.

Lynx Lake is 28 miles north of La Ronge, Sask., and is only 2 miles from Cameco’s (TSE) newly commissioned Contact Lake gold mine. Minable reserves at Contact Lake are estimated at 1.3 million tons averaging 0.23 oz.