A recently signed option deal with Mingold Resources gives Golden Band Resources (VSE) the right to acquire Mingold’s 44.83% interest in the Farley Lake gold property east of Lynn Lake, Man.
The project’s remaining 55.17% is owned by Manitoba Mineral Resources. Golden Band can acquire the interest by making staged payments totalling $275,000 and completing $3 million in exploration over a 5-year period. The work commitment in the first year totals $300,000 plus a cash payment of $10,000.
Mingold retains a 1.5% NSR before the return of preproduction capital costs, increasing to a 2.5% NSR thereafter and capped at $3 million. Expenditures on the property to date total over $8 million including the building of an access road to the site.
In 1989 Roscoe Postle estimated minable open pit reserves in two zones on the property at 1.3 million tons grading 0.12 oz. gold per ton with a strip ratio of about 2-to-1.
Gold mineralization is controlled by structures within magnetic-banded iron formation and Golden Band sees good potential in locating additional zones to the north of known reserves.
The company plans to begin a $300,000 drilling program immediately and Manitoba Minerals has committed to spend a further $370,000 before year’s end to prevent the dilution of its interest.
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