Cross Lake, two others to buy 60% of Timmins project
Cross Lake Minerals Ltd CRN
Shares issued 32,782,665 Nov 14 close $0.13
Wed 15 Nov 2000 News Release
Also Repadre Capital Corporation (RPD)
Also East West Resource Corp (EWR)
Mr. Henry Ewanchuk reports
Cross Lake Minerals Ltd., East West Resource Corporation and Canadian
Golden Dragon Resources Ltd. have agreed to acquire Repadre Capital
Corporation's ("Repadre") 60-per-cent interest in the Night Hawk Lake joint
venture property (NHLJV property), located near Timmins, Ont. Cross Lake,
East West and Golden Dragon currently hold a combined 40 per cent (16 per
cent, 16 per cent, and 8 per cent, respectively) in the NHLJV property;
upon completion of the transaction, the companies' interests will increase
to 100 per cent (40 per cent, 40 per cent, and 20 per cent, respectively),
with Cross Lake as the operator.
As consideration, Repadre will be granted a 2.5 per cent net smelter return
royalty (NSR royalty) on the NHLJV property. The purchasers will have a
one-time right, at their option, to reduce the NSR royalty to 1.0 per cent
with the payment of $1.5-million to Repadre.
The NHLJV property is located 41 kilometres east of Timmins, in the
Macklem, Bond, Currie, Sheraton and Thomas Townships. It comprises 10,256
hectares and encompasses 108 unpatented mining claims (633 units) and two
patented lots (eight units). Since October, 1996, a total of 15,026 metres
of diamond drilling in 47 holes has been completed on the property, as well
as 899 metres in four holes drilled by Cross Lake which extended onto the
NHLJV property from Cross Lake's adjacent Sheraton-Timmins property.
There are several very attractive high priority target areas on the NHLJV
property which will require testing. The main Cross Lake zone on the
Sheraton-Timmins property strikes northeast and southwest onto the NHLJV
property and has been verified on the NHLJV ground by detailed Induced
Polarization (IP) geophysical surveys and exploratory drilling. One
kilometre north of the Cross Lake zone is the Sheraton Lake zone, located
100 per cent on the NHLJV property, which consists of copper and zinc
mineralization in favorable altered felsic volcanic and volcaniclastic
rocks with a strong I.P. signature. The recently released Ontario
geological survey operation treasure hunt airborne geophysical survey
outlined the Sheraton Lake zone extremely well and delineated several more
electromagnetic (EM) anomalies on the flanks and along strike of the known
mineralization that require testing. Another high priority target is a
cluster of EM anomalies, outlined by the OGS survey and ground I.P.
surveys, located halfway (500 metres) between the Cross Lake and Sheraton
Lake zones with a parallel strike direction. This area is favorable for
base metal deposition in stacked volcanogenic massive sulphide systems.
These high priority areas will be ground tested within the next month using
MMI soil analyses to prioritize the targets for future detailed
exploration.
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