Another big U.S. company, U.S. Borax & Chemical Corp., has decided to get out of the mining business.
In a deal scheduled to be closed this month, Jascan Resources Inc., a Toronto-based junior, has agreed to pay $3 million for nine gold properties held by Borax. They are located in Newfoundland, New Brunswick, Georgia and Colorado.
The Dawson project in Colorado is by far the most advanced and is a significant acquisition for Jascan, according to President Will Felderhof. Some 42,000 ft of drilling was completed by Borax in 43 holes to delineate a wide, volcanogenic exhalite gold deposit with good underground mining potential. Drill-indicated reserves are about one million tons averaging 0.15 oz gold per ton at a cutoff of 0.04 oz. Average widths are 40 ft.
The geological structure that hosts the deposit has significant exploration potential as well. It has been traced for a distance of about 3.5 miles and the deposit itself is open down dip and in one strike direction. Jascan will end up with a 60% direct interest in the property.
To finance exploration work on this, and other properties, Jascan has raised $1.1 million in flow- through funds and about $4 million through a private placement in the U.K.
GEOGRAPHICAL LOCATION: Maritimes
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