Drilling scheduled at Frond Lake bet

Drilling is to begin mid-June at the Frond Lake gold prospect, located 60 mi east of Pickle Lake and 250 mi north of Thunder Bay in northern Ontario, Ayrex Resources Chairman David Walsh reports.

Ayrex has acquired a 50% interest in the property from Tandem Resources for a consideration of 900,000 Class “A” shares of Ayrex. Tandem will fund the first $500,000 of expenditures; the total budget is approximately $800,000.

An engineering report prepared by mining consultants Derry, Michener, Booth and Wahl reports previous drilling indicated 300,000 tons of ore grading 0.22 oz gold per ton to a depth of 200 ft.

The 20,000 ft of drilling will test the known gold-bearing zone at depth and along strike. Drill testing of other targets on the property is also planned. Tandem is the operator.

Because of the nature of the agreement between the two companies, once the drilling program is complete Tandem will control Ayrex.

Meanwhile, Ayrex, along with joint-venture partner Bresea Resources, has acquired a 100% interest in a 26-sq-mi concession in the Labrador trough of northeastern Quebec.

The platinum prospect is to be the site of a $500,000 exploration program this summer. Mr Walsh reports a mining exploration and development company has expressed an interest in funding the program in return for a 50% working interest.