Major General options Yankee property to Hawkeye
Major General Resources Ltd MGJ
Shares issued 38,152,643 Jun 18 close $0.24
Fri 18 Jun 99 News Release
Also Hawkeye Gold International Inc (HGO)
Mr. Glenn Shevchenko reports
Major General has granted Hawkeye Gold International an option to acquire up to 50 per cent interest in the Yankee property (90,000 acres) within 15 kilometres of the new diamond discovery on Victoria Island, Nunavut. The property is part of Major General's 1.3 million acre Homerun project which covers the favourable structures in this emerging diamond field. The Yankee property covers an area that is considered to be highly prospective for diamonds as it is within 15 kilometres west and 25 kilometres south of two diamond-bearing kimberlite clusters. The property hosts favourable targets that have been interpreted from remote-sensing and airborne geophysical surveys. The remote sensing studies indicate that there is a close relationship between kimberlites and the dense intersections of linear features. These studies have shown a large area of intersecting structures in the southwestern portion of this property. The remote sensing studies have also outlined the presence of large and small subcircular structures on and near the Yankee property. Similar subcircular structures are evident in the Lac de Gras diamond discovery area. In the northeastern portion of the property, the geophysical survey has identified a possible kimberlitic target that is defined by a circular magnetic low anomaly measuring 400 metres wide with an interpreted depth of 75 metres. Hawkeye has the right to earn a 33 1/3 per cent interest in the property, which is currently covered by prospecting permits, by paying staking costs (estimated at approximately $70,000), issuing 100,000 shares in two stages and incurring exploration expenses of $2.00 per acre over the course of the next year. Major General will arrange for all staking and will be operator in respect of the initial exploration program.
The claims will be subject to a back-in right in favour of Monopros Limited for a 30-day period after they have been staked. If such back-in right is exercised in respect of any of the subject claims, Hawkeye's interest in those claims will be diluted down from 33 1/3 per cent to 16 1/3 per cent and its obligation to incur exploration expenses on the selected claims will be commensurately reduced to $1.00 per share. If Monopros does not exercise its option, Hawkeye will maintain a 33 1/3 per cent interest in the claims and will, in addition, have the right to increase its interest to 50 per cent and become the operator by issuing another 50,000 shares and incurring additional exploration expenses of $2.00 per acre during each of the two ensuing years.
© Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
|
