Northgate Exploration Limited Agree To Option Praxis Claim Group From Praxis Goldfields Inc.
VANCOUVER, BRITISH COLUMBIA--Northgate Exploration Limited and
Praxis Goldfields Inc. (Praxis) are pleased to announce that they
have signed an agreement to enter into an Option Agreement
providing for Northgate to earn a majority interest in Praxis'
claim group located in the Stewart Mining Camp in Northwestern
British Columbia, Canada.
The agreement provides for Northgate to earn a 51% interest in the
properties by incurring exploration expenditures of $3,300,000
over a period of four years. Upon exercise of the Option, the
parties will enter into a joint venture. If Praxis does not elect
to participate in the joint venture, or fails to meet its share of
planned expenditures, its interest will revert to a 2% Net Smelter
Return, one-half of which may be purchased by Northgate for
$2,000,000.
The Praxis Project is located in the historic Stewart Mining Camp,
consisting of 325 Praxis mineral claim units plus 70 optioned
contiguous Brown and Ark mineral claims. Together, they cover an
area of 75 square kilometers adjacent to tidewater on the west
side of the property. Elevations range from sea level to 2000
metres on the claims. No exploration work prior to 2000 has been
documented on the Praxis claims. Government agencies have
completed regional scale mapping and stream sediment surveys in
the district. The claims represent a classic volcanic associated
massive sulphide depositional environment and are hosted in the
Salmon River formation which hosts Eskay Creek and the historical
Anyox/Maple deposits. Systematic geochemical, geophysical and
geological surveys completed in 2000 and 2001 by Praxis Goldfields
have identified several high priority exploration targets which
will be the focus of a Phase I diamond drill program consisting of
some 3000 metres of drilling in several holes schedules for the
2002 field season.
Ken Stowe, President and C.E.O. of Northgate commented: "The
Praxis Project fits our regional exploration strategy of targeting
attractive properties in northern British Columbia. We expect to
complete Phase I drilling on the Praxis claims by the end of
October 2002." |
