Expatriate Resources Ltd -
Expatriate signs letter of intent on Aurex-Sinister property
Expatriate Resources Ltd EXR
Shares issued 14,347,500 1999-10-28 close $0.4
Wednesday Nov 3 1999
Dr. Harlan Meade reports
Newmont Mining Corporation and Expatriate Resources have signed a letter of intent for an option and joint venture agreement on the Aurex-Sinister property 34 kilometres northeast of Mayo in central Yukon. The property consists of 155 claims comprising the Aurex property which is under option to Expatriate from YKR International Resources Limited (see Stockwatch Jan. 25, 1999) and 111 claims in the adjoining Sinister property which is wholly owned by Expatriate.
The Aurex-Sinister property is in the eastern part of the Tintina gold belt within the Mayo Placer gold district. It is underlain by Late Proterozoic to Early Cambrian metasedimentary and metavolcanic rocks that occur in the upper plate sequence overlying the Robert Service thrust fault. The million-ounce Dublin Gulch gold deposit and a number of other nearby gold occurrences are hosted by these rocks or Cretaceous-age granitic intrusions cutting them. The silver deposits of the Keno Hill district are hosted by the lower plate sequence beneath the thrust fault, a few kilometres northeast of the property.
The main target area on the property is covered by extensive overburden but scattered bedrock exposures indicate strata dip gently to the south. Sampling has yielded gold assays of up to 8.8 grams per tonne from arsenopyrite-pyrrhotite-bearing skarn bedrock and 9.3 g/t from stibnite-arsenopyrite vein float. Shallow air track drilling by YKR between 1992 and 1994 outlined three zones containing widespread gold mineralization with highly anomalous arsenic, antimony and tungsten. The best intersection within these holes averaged 7.9 g/t gold over 6.1 metres. Most of the drilling was done on a dip slope and failed to test the entire stratigraphic section. Recent grid soil sampling has defined large arsenic and gold anomalies that extend well beyond the areas of known mineralization.
The option will allow Newmont to earn a 51-per-cent interest by spending $3.5-million on exploration over a five-year period. To maintain the option, Newmont must make payments of $100,000 to Expatriate during the term of the option, including an initial payment of $20,000 and fulfill all obligations of the underlying option agreement with YKR. Newmont may at its option, satisfy the option payment obligations to Expatriate by subscribing to common shares of Expatriate at 150 per cent of the average market price for the preceding 30 days. Upon vesting a 51-per-cent interest, Newmont can earn an additional 9-per-cent interest by spending another $2.5-million over a three-year period; after which, it may increase its interest to 80 per cent by completing a positive feasibility study on the property and making a production decision. Newmont shall commit by Jan. 15, 2000, to the first year program of at least $200,000 in exploration. Newmont, upon vesting its interest under the various options, shall enter into a joint venture with Expatriate to continue exploration or development of the property. YKR and J. McFaull retain respective 1.5-per-cent and 3-per-cent net smelter return royalty interests in the Aurex property, each of which can be bought out at any time by the joint venture for a cash payment of $1-million.
Expatriate is extremely pleased to have Newmont exploring its Aurex-Sinister property. Newmont brings a wealth of exploration experience elsewhere in the Tintina gold belt and is recognized for its technical and operational expertise. With the Aurex-Sinister property in strong hands, Expatriate can focus on its base metal properties in the Finlayson district and other gold properties within the Tintina gold belt.
WARNING: The company relies upon litigation protection for "forward-looking" statements. |
