Northern Minerals to focus on Gordon Lake gold property

The directors of Northern Minerals (TSE) are recommending that their shareholders accept a recent offer to amalgamate with Capilano International, a private geophysical contractor with annual revenue of nearly $17 million. Under the proposed amalgamation, four Northern shares will be exchanged for one share of Capilano plus a warrant to purchase an additional share at $3 until Nov. 30, 1991. Subject to all approvals, the result will be a TSE-listed company with an initial capitalization of 4.25 million shares and a strong cash flow.

Northern is focusing its efforts on the Gordon Lake gold property, 70 miles northeast of Yellowknife, N.W.T. Eight zones of significant gold mineralization have been outlined in quartz veins over a strike length of 8,500 ft. Four of the zones have been drill tested and are open along strike and downdip.

The best intersection from the No. 9 vein was 0.61 oz. gold per ton over 22 ft., while the deepest hole returned 0.41 oz. over 16.4 ft. at a depth of 700 ft. The vein has been drill tested for a length of 200 ft. Preliminary reserves are estimated at around 70,000 tons grading 0.56 oz.

The No. 3 vein, about 100 ft. away from No. 9, yielded a best intersection of 0.27 oz. over 14.4 ft. High-grade values were also reported from four other veins on the 78,000-acre property.

Northern said several large silicified and chloritized shear zones have been outlined in the mafic volcanics that border the east side of the property. Anomalous concentrations of arsenic and gold have been detected by geochemical sampling in the zones. A surface exploration and diamond drilling program is planned for the property next year.