Northfield and Armistice plan Larder Lake area work

Alberta-listed Northfield Minerals could acquire an interest in anot her strategic piece of ground in the Larder Lake area next to the Virginiatown gold mine operated by Kerr Addison Mines. Shareholders of Northfield, which already has a right to earn a 30% interest in the Larder property, located along strike to the west of the mine, are being asked to finance a $200,000-drilling program on the ground separating the Larder property from the mine.

This ground, known as the Sheldon-Larder property, is held by two coats-listed companies — Sheldon-Larder Mines and Arjon Gold Mines. Two holes drilled in 1974 intersected gold values in a silicified flow zone which is believed to be the faulted extension of the Kerr Addison orebody.

Another company, Armistice Resources, which was recently listed in Alberta, has since negotiated a right to a 75% net profit interest in the ground by spending $1.15 million on exploration and making payments of $120,000 to the vendors over five years. The company’s long range plan is to deepen the existing 1,275-ft shaft another 2,085 ft to allow drifting along the deep flow zone.

The initial financing provided by Northfield shareholders would be for a deep drilling program from surface. Financing would be provided in exchange for flow-through shares in Armistice, to be issued in 1988.

Armistice president Russell Martel tells The Northern Miner drilling could start as early as March. Then, based on the results and those of a $5-million program on the Larder property, the company could be in a position to do a major financing for an underground program.

The company is also considering applying for assistance from the Ontario Mineral Exploration Program which will fund up to 25% of the cost of el igible exploration programs in Ontario. That fund has recently been increased to $12 million.