Prime sells stake in Akiko-Lori Gold

Murray Pezim’s Prime Resources (VSE) has sold its stake in junior explorer Akiko-Lori Gold Resources (VSE) to concentrate its efforts on the high profile Eskay Creek gold play in northwestern British Columbia. Prime Management and Prime Explorations had been acting as management consultants for Akiko- Lori which is involved in a 50/50 joint venture with Noranda (TSE) on the remote Springpole gold project in northwestern Ontario.

Following Prime Resources’ sale of its 23% stake in Akiko-Lori, control of the junior firm has now passed to an overseas group that includes European bankers and investors.

Akiko-Lori also announced it has accepted the resignations of Arthur Clemiss, John Ivany and Murray Pezim from its board of directors. Michael Levinson has been appointed as the new president of Akiko-Lori, and Albert Raponi of the law firm Morton & Co. has also joined Akiko’s board of directors.

“Clemiss, Ivany and Pezim served the company well and their valued advice and guidance will be missed,” says Levinson.

Akiko-Lori’s share price has slipped to $4.45, down from an earlier high of $7 in March. Drill results from a winter exploration program on the Springpole property have been mixed. A low-grade gold deposit of 7.9 million tons averaging 0.07 oz. per ton has been reported on the property.

A spokesman for Noranda says the Portage zone of the Springpole property is “looking marginal” at current gold prices, based on the results of recent work. The deposit lies under Springpole lake which would complicate any potential open pit mining operation there, he added.

A summer exploration program is being formulated by Noranda to focus on some higher-grade gold zones on the property, but the size and scope of that program have yet to be finalized.

Akiko and Noranda can earn a 70% interest in the property from Gold Fields Canadian Mining by spending $20 million on exploration over the next seven years. Gold Fields has spent about $8 million on the claims since 1985.