Major General enters agreement on Green Bay property
Major General Resources Ltd MGJ
Shares issued 41,826,328 Jul 7 close $0.13
Mon 10 Jul 2000 News Release
Mr. William Coulter reports
An agreement on the Green Bay base metal property in Newfoundland with Anglo American affiliate, Hudson Bay Exploration and Development Company Ltd. The agreement includes approximately 600 mineral claims covering 10,000 hectares in area.
Under the terms of the agreement, HBED may earn a 60-per-cent interest in the properties by making exploration expenditures of $3.5-million and option payments of $200,000 over a period of four years. Once HBED has earned the 60-per-cent interest, a joint venture will be formed where HBED may earn an additional 15-per-cent interest by financing a feasibility study, upon which ownership will be HBED 75 per cent and Major General 25 per cent. If Major General dilutes to a 10-per-cent equity interest, its joint venture interest will revert to a 2-per-cent net smelter royalty of which 1 per cent can be bought by HBED for $2-million. Major General’s Green Bay properties cover most of the Catcher’s Pond felsic volcanic belt of north-central Newfoundland. The Catcher’s Pond volcanics are closely related to the nearby Buchans volcanic rock sequences which hosted the rich Buchans base metal deposits. The Buchans mines were in production for 57 years and produced over 16 million tonnes of ore grading 14.5 per cent zinc, 7.5 per cent lead, 1.33 per cent copper, 126 grams per tonne silver and 1.37 g/t gold.
To date, Major General has identified a number of high-grade base/precious metal zones and prospects in a geological setting similar to the Buchans deposits. These prospects warrant further investigation by ground evaluation and diamond drilling. HBED plans to commence a $200,000 exploration program on the property later this summer.
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