Contamination suspected in Strike core

Goldhunter Explorations (ASE) is reconsidering its participation in a joint venture in the Shining Tree camp after an intersection, which had been rumored to be rich, was attributed to “contamination.”

On Dec. 9, Strike Minerals (CDN) issued a release stating that “contamination of the first hole drilled in the Shining Tree area of northeastern Ontario has been confirmed by an evaluation of the rejects from the original sample and corresponding split core by James E. Tilsley and Associates.”

In an interview with The Northern Miner, Strike President Carl Forbes said he has “no idea how the core was contaminated.” He is awaiting Til-sley’s final report before commenting further.

The assay results came from one of two holes totaling 600 ft. completed in late October by Premier Explorations, a private company run by Forbes. The holes were drilled on a 9-claim property in Fawcett Twp. Shortly afterwards, rumors of a “fantastic” intersection, as high as 5 oz. over 36 ft., began to circulate.

No values from the first hole were made public until Nov. 29 and the company has not released any assay results from the second hole.

The property was originally staked by Premier. Strike entered an agreement with Premier to acquire a 90% interest for $2,250. The remaining 10%, owned by two prospectors, was acquired by Strike for cash payments of $2,250 and a 1% net smelter return royalty.

Under the original agreement, Strike granted a 50% option in the property to Goldhunter for $24,750 in cash and 100,000 shares. Goldhunter is supposed to spend $500,000 on exploration over the next three years.

Speculation of investigations by regulatory authorities were also spreading. Forbes said he has contacted officials with the Canadian Dealer Network (CDN), the computerized over-the-counter exchange where Strike shares trade. He added: “I’m making a written statement to Roy Hill (CDN manager), and he doesn’t think an investigation is necessary.” Hill commented that Forbes was “very responsible to issue a statement regarding the contamination of the drill core.”

Kim Anderson, a member of the Enforcement and Inquiries branch of the OSC, said “any investigation into a company’s activities would be announced if, and only if, a hearing were to be called by the OSC.” No such hearing has been called.

Prior to this latest disclosure of suspected contamination, all the talk and speculation had sent the price of Strike’s stock on a roller-coaster ride. It has gone from a bid-ask range of 22-27 cents four weeks ago, to a 52-week high of $1.32 (for the week ending Nov. 30). Volume for the past few weeks has been at least 500,000 shares weekly. The stock recently closed at 23 cents.

Shares of Goldhunter have also been strong, going from 16-18 cents to 66 cents for the week ending Nov. 30. Weekly volume for the past few weeks has been at least several million shares per week. Goldhunter recently closed at 18 cents.

The property was originally staked by Premier after a “land caution area” totaling 312 townships was lifted by the provincial government in April, 1990. The land caution was put in place because the area lies on the periphery of the Temagami wilderness area. A government spokesman said lifting the caution “basically opened up an additional

100 sq. miles of high mineral potential land in the Shining Tree area.” Following the Christmas break, Strike plans to complete an induced polarization survey, Forbes said, adding that he would like to redrill and resample the holes in question.

In related news, Strike Minerals has optioned to CopperQuest (CDN) the adjoining ground east of the 9-claim property. CopperQuest has a half interest in a 35-claim block in Fawcett Twp. This ground includes the former gold producer known as the Ronda Downdip, as well as the Foisey property. Drilling is to start as soon as permits are in place.