Stroud to double stake in Hislop Twp. gold bet

Toronto-based Stroud Resources (TSE) is set to double its stake in a Hislop Twp. gold project near Timmins, Ont., by acquiring the 50% interest held by its former partner Chevron Minerals, a unit of Chevron (NYSE).

To acquire the 50% interest, Stroud will provide $1 million in exploration funds, which can be spent on a project of Chevron’s choice, and a further $1 million from any future production revenue on the Hislop property. Chevron will also retain a production royalty of $5,000 per year from the Hislop property.

Stroud President George Coburn said his company has spent about $2 million on the Hislop project to date, while Chevron has spent about $3 million.

“We had a good partner in Chevron, but I’m glad to get the property back,” he told The Northern Miner. Stroud acquired the original property five years ago, and will now take over as operator from Chevron, which closed its Toronto exploration office earlier this year.

Preliminary estimates of reserves in two known gold zones on the Hislop bet stand at 856,000 tons grading 0.186 oz. gold per ton. A recently completed drilling program tested an area between two gold zones (main and creek) and results are expected soon.

According to Coburn, an underground exploration program costing about $2 million is contemplated for the project, and a gold warrant financing plan is a possible option being explored by the company.

Stroud has about 11.2 million shares outstanding and modest revenue from gas condensate wells in central Alberta.