Lac options Canadian properties

Long known for its large-scale projects in South America, Lac Minerals (TSE) has broadened its focus and resumed exploring for orebodies in Canada.

First indications of this change were evident when Lac North America signed an agreement with Tintina Mines (TSE) and NSR Resources (TSE) to explore for gold in the Fort MacKay area of northeastern Alberta.

Recently, Lac entered three separate agreements within the space of one week to earn interests in properties held in different regions of the country. The major has signed deals with Nebex (ASE), East West Resource (VSE) and William Resources (ME).

“We have always been active in Canada,” said John Pearson, manager of investor relations for Lac. “In fact, our North American exploration budget is $23 million and we are interested in grassroots projects, joint ventures and options, as well as more advanced projects.”

Nebex holds a 75% interest in the 6,200-acre Walsh Lake gold project near Yellowknife, N.W.T. Lac, upon completion of the formal agreement, can earn a 51% interest (excluding diamond rights) in the property by spending $2.5 million on exploration and by arranging a $2-million private placement of Nebex shares within three years. Lac can earn an additional 9% by completing a feasibility study.

First-year plans include spending $600,000 and drilling 20,000 ft. East West granted Lac an option to earn a 60% interest in 184 claim units in Timmins Twp. in northeastern Ontario by spending $700,000 over four years and making a series of option payments totaling $60,000.

The property has a 900-ft.-wide sericite schist with green mica and pyrite. Samples from the zone have yielded anomalous gold values. In addition, the property holds a massive sulphide body that has given anomalous zinc values. Lac has also signed a letter of intent with William Resources concerning the latter’s Lac Olga property 30 miles northeast of Matagami, Que. Lac can earn a 51% interest by spending $1 million on exploration or development work and by paying $200,000 cash over four years.

Previous work included geophysical surveys and diamond drilling. Anomalous gold values were intersected in felsic rocks associated with extensive chlorite and sericite alteration.