Glencairn Explorations has signed an agreement in principle with bhp-Utah Mines, a U.S-based company. Utah has the right to earn a 55% interest in Glencairn’s 24- claim Blue Mountain gold property in Maisonville and Bernhardt twps., Ont.
Under the terms of the deal, Utah must spend $150,000 before Dec 1, 1989, on the 24 Glencairn claims and another 16 adjoining claims, currently owned by Utah. The Glencairn property is subject to a 5% net profits royalty interest.
The Utah-operated program, which is scheduled to begin immediately, will include linecutting and ground geophysical surveys followed by diamond drilling. The work will test several surface gold showings associated with the Kinika zone on which a 50-ft shaft was sunk in the 1920s. Underground results included 15 ft grading 0.16 oz gold per ton on one level.
Surface drilling in the 1970s returned several encouraging intersections including 3.2 ft grading 0.24 oz and 0.145 oz across 6.2 ft.
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