Vancouver —
According to the amended agreement, Expatriate will have until Sept. 5 to make the $1-million payment that was originally due May 24. It is the first of four annual principal payments that are part of an agreement made last year with Cominco whereby Expatriate can acquire a 100% interest in the Kudz Ze Kayah deposit and surrounding properties. The Kudz Ze Kayah deposit is a fundamental part of Expatriate’s plan to develop two deposits in the region.
In return for the extension, Expatriate will pay Cominco $100,000 and interest on the $1 million from May 24 until the date of payment. All other terms of the agreement remain the same. The extension provides Expatriate with the opportunity to find alternative financing and working capital to advance the Finlayson project to a bankable feasibility study. The junior says it has initiated discussions with several groups for both debt and equity financing. Exploration at Kudz Ze Kayah will be deferred until Expatriate pays Cominco.
The Finlayson project comprises both Kudz Ze Kayah, owned by Expatriate under a purchase agreement with Cominco, and the Wolverine deposit, owned 60-40 by Expatriate and
Nearby, exploration of Expatriate’s wholly owned Red Line and Goal Net properties is to begin in late June. Earlier this spring, a horizontal-loop electromagnetic ground survey on the Red Line property delineated a 500-metre-long conductor north of another shallow conductor. The shallow conductor was previously tested by drill holes that returned narrow intervals of massive sulphides.
Geophysical and geochemical field surveys on the Goal Net property are scheduled for this summer. These surveys will evaluate the extension of a massive sulphide horizon discovered last fall. Narrow massive sulphides were intersected in two holes spaced about 400 metres apart. Previous soil surveys defined numerous zinc-lead-copper-silver-gold anomalies in an area measuring 4 by 6 km.
Drilling at Red Line and Goal Net is expected to begin in July. All the massive sulphides known to exist on these properties are low in selenium concentration and appear to correlate with the rhyolitic rocks that host the GP4F deposit, 7 km to the northwest.
Expatriate believes GP4F, as well as the Red Line and Goal Net discoveries, represents a lower mineralized horizon and potentially hosts significant tonnages.
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