Hawkeye and Major General agreement gets VSE approval
Major General Resources Ltd MGJ
Shares issued 39,262,163 Sep 13 close $0.15
Tue 14 Sept 99 News Release
See Hawkeye Gold International Inc (HGO) News Release Mr. Greg Neeld reports Management has disclosed that the Vancouver Stock Exchange has accepted for filing an agreement dated June 4, 1999, between Hawkeye Gold International Inc. and Major General Resources Ltd., pursuant to which Major General has granted Hawkeye an option to acquire up to a 50-per-cent interest in the Yankee property (approximately 90,000 acres), which is adjacent to the new diamond discovery on Victoria Island, Nunavut, Canada. The Yankee property is part of Major General?s 1.3 million-acre Homerun project, which covers the favourable structures in this emerging diamond field. The Homerun project is also the area in which Dia Met Minerals Ltd. announced on Aug. 28, 1999, that it had reached a substantial agreement with partners Major General and Ascot Resources Ltd., whereby Dia Met may earn a 51-per-cent interest in properties adjacent to and partly surrounding the diamondiferous kimberlite discoveries as discussed in further detail hereunder. Dia Met?s optioned land covers 644,300 acres within the Homerun project-Victoria Island diamond play area. Dia Met must expend a total of $7-million over five years to earn a 51-per-cent interest in the properties, and to this extent has commenced field operations with a crew of 12 to 15 people on site. The success of Dia Met?s diamond discovery at Lac de Gras, leading to the operating Ekati mine, clearly establishes their expertise at diamond exploration.
The Yankee property covers an area that is considered to be highly prospective for diamonds, as it is situated near two diamond-bearing kimberlite clusters. The first cluster, owned by Major General-Ascot-Monopros (DeBeers) is within 15 kilometres to the east of Hawkeye?s property boundary, while the northern boundary is within 25 kilometres of the Monopros diamondiferous kimberlite discovery to the north. To date, 15 kimberlites have been discovered on Victoria Island. Of those, 12 are known to be diamondiferous. The five diamondiferous kimberlites announced in late 1998, situated within 15 kilometres to the east of the Yankee property, contained microdiamond results ranging from one micro per 100 kilograms to 102 micros/100 kilograms. Hawkeye?s claims are in the same geological setting as these discoveries, with approximately one-kilometre thick sediments overlying the Slave Craton. The kimberlites discovered to date penetrate through these sediments to surface. The Slave Craton is also host to the rich Lac de Gras diamond discoveries. The property hosts two primary targets along with several other 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. A large, strong intersection of such structures occurs in the southwest portion of the Yankee property. This area will be one of the primary targets for Hawkeye. Furthermore, the remote sensing studies have outlined the presence of numerous 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 bullseye kimberlitic target that is defined by a circular magnetic low anomaly measuring 400 metres wide with an interpreted depth of 75 metres. This area is considered a primary target. In addition, several north-south and northwesterly trending diabase dykes transect the property. Diamondeferous kimberlite pipes that have been discovered on Victoria Island are in close proximity to these diabase dykes.
The Hawkeye-Major General joint venture presents tremendous opportunities, as Hawkeye will not only benefit from the expertise of its own team of consulting geologists, K. Vincent Campbell and Kit Campbell, but also from Major General?s top shelf geological team and its extensive experience and knowledge of the Victoria Island diamond play. Hawkeye has the right to earn a 33 1/3-per-cent interest in the Yankee property, which is currently covered by prospecting permits, by paying staking costs (estimated at $70,000), issuing 50,000 common shares to Major General immediately and an additional 50,000 common shares upon completion of an initial exploration program, by incurring exploration expenses of approximately $2.00 per acre on or before Sept. 30, 2000, and the company filing with and obtaining acceptance by the VSE of an engineering report recommending a further phase of exploration. 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 period of 30 days. Thirty days notice must be given to Monopros by Major General within 15 days after the claims 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 those clams will be commensurately reduced from approximately $2.00 per acre to approximately $1.00 per acre.
If Monopros does not exercise its option on all of the claims, Hawkeye will maintain its 33-1/3-per-cent interest in the claims and will, in addition, have the right to increase its interest in those claims to 50 per cent and become the operator by incurring additional exploration expenses of approximately $2.00 per acre after Sept. 30, 2000, and on or before Sept. 30, 2001, (the second year exploration program), and after Sept. 30, 2001, and on or before Sept. 30, 2002 (the third year exploration program), and by issuing another 50,000 shares of the company to Major General upon completion of the third year exploration program, and Hawkeye filing with and obtaining acceptance by the VSE of an engineering report recommending a further phase of exploration.
A finder?s fee of 38,000 shares in connection with the Yankee property acquisition is payable to Vincent K. Campbell.
The shares that are issuable to Mr. Campbell and Major General are subject to a hold period expiring at 12 midnight on Oct. 21, 1999.
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