PRECIOUS METALS — Prism farms into previously explored Aurora project

An agreement between Prism Resources (PRN-V) and Boliden (BOL-T) will enable the former to earn a 100% interest in four gold prospects in northern Ontario.

At the centre of the deal is the 6,770-ha Aurora property, 200 km northeast of Timmins and on the northern edge of the Abitibi greenstone belt. The remaining properties are near Placer Dome’s Detour Lake mine.

Prism will earn its full interest in stages, acquiring an initial 30% upon issuing 1 million shares to Boliden. This will be followed by an additional 20% in return for spending $250,000 over 30 months, and the remaining half-interest in return for spending $1 million over six years.

The company intends to carry out follow-up diamond drilling in an area known as the Southern Break, as well as core and reverse-circulation drilling on anomalies in the Central and Northern Breaks.

The Aurora property has changed hands numerous times since exploration began there in 1980. Westmin Resources, which was eventually acquired by Boliden, explored the property between 1981 and 1989, during which time it identified four gold-in-till anomalies.

Placer Dome, in 1996 and 1997, conducted geophysical surveys and sunk 32 diamond drill holes. Three holes returned anomalous gold values, including 2.6 metres grading 21 grams gold per tonne and 3 metres of 46.2 grams gold.