Cumberland buys Asamera ground

A purchase agreement has been signed between Cumberland Resources (VSE) and Asamera Minerals (now wholly owned by Gulf Canada Resources) for property interests in the Northwest Territories.

The properties include Asamera’s 60% interest in the Meadowbank River project and a 50% interest in each of the Meliadine River and Parker Lake projects.

The remaining interests in the properties are owned by Comaplex Resources (TSE) except for Parker Lake, which is 25%-owned by Manson Creek Resources (TSE) Cumberland will pay Asamera $450,000, including $150,000 by May 31, plus two promissory notes of $150,000. The notes are due May 31, 1994, and May 31, 1995.

Asamera retains a 2% net smelter royalty on the properties, payable from Cumberland’s acquired interest. The royalty is reduced to 1% after the first $5 million is paid.

The Meadowbank project, 60 miles north of Baker Lake, covers three prospect areas along a 3-mile-long gold trend.

One of the three, the Third Portage area, contains a preliminary inventory of about one million tons grading 0.19 oz. gold per ton.

At Goose Island, half a mile south of Third Portage, three widely spaced drill holes returned 0.38 oz. gold over 57.8 ft., 0.16 oz. gold over 26 ft. and 9.29 oz. gold over 9.5 ft.

Immediately north of Third Portage, in the North Portage area, one hole intersected 0.42 oz. gold over 3.9 ft.

The Meliadine River project covers more than 100,000 acres about 16 miles north of Rankin Inlet. Three targets including the Discovery, Snow Goose and Westland have been identified to date.

The Discovery, within two miles of tidewater, contains about 900,000 tons grading 0.29 oz. gold and is open to expansion.

Drilling on the Snow Goose returned values up to 0.68 oz. gold over 6.1 ft. while drilling on the Westland project returned significant values in 20 out of 28 holes including 0.41 oz. gold over 11.3 ft. and 0.73 oz. gold over five feet.

No drilling has been conducted at the Parker Lake project, 60 miles southeast of Baker Lake. It covers a 10-mile-long pyroclastic volcanic belt containing significant strataform sphalerite-chalcopyrite mineralization. John Greig, a director, said Cumberland expects to spend about $600,000 on the properties this year. Meliadine River is a priority because of its near-term production potential and proximity to tidewater.

Greig said much of the funding would come from the exercise of existing warrants and options and from a private placement for about $250,000. Cumberland has about 7.1 million shares outstanding on a fully diluted basis.