A little more on Denstone:
Denstone to acquire 50% interest in North Elbow Lake
Denstone Ventures Ltd DST
Shares issued 1,072,000 Feb 2 close $0.85
Mon 5 Feb 2001 News Release
Mr. Robert McIntosh reports
Denstone Ventures has entered into a letter agreement with 1349563 Ontario
Ltd., a private Ontario company of Thunder Bay, Ont., whereby the vendor
has granted Denstone the exclusive option to acquire a 50-per-cent interest
in the vendor's interest in seven mineral claims known as the North Elbow
Lake property located in the Thunder Bay mining division of Ontario. In
order to exercise the option, Denstone must: pay to the vendor the sum of
$110,000 within five days of Canadian Venture Exchange acceptance of the
agreement; pay to the vendor an additional sum of $135,000, payable over
four years; and incur a total of $1-million in exploration expenditures on
the North Elbow Lake property on or before Jan. 1, 2005. Denstone must also
issue to the vendor 100,000 special warrants. Each special warrant will
entitle the vendor to acquire, at no additional cost, one common share of
Denstone on the earlier of: the fifth day following the date that Denstone
becomes an annual information form (AIF) issuer; the fifth day following
the date Denstone receives receipt for a final prospectus qualifying the
shares arising from the exercise of the special warrants for distribution
in either British Columbia or Ontario; or one year from the issuance of the
special warrants. Denstone is under no obligation to file a prospectus and
no penalties apply for failure to do so, or for failure to become an AIF
issuer.
Denstone has also agreed to issue to the vendor an additional 100,000
shares in its capital stock following the completion of $750,000
exploration expenditures on the North Elbow Lake property on or before Jan.
1, 2004.
The vendor has the right to acquire a 100-per-cent interest in North Elbow
Lake property, subject to a 3-per-cent net smelter return royalty granted
to the owner. The vendor and Denstone have the right to reduce the royalty
to 2 per cent by the payment of $1-million.
The North Elbow Lake property is located approximately 140 kilometres west
of Thunder Bay and 45 kilometres east of Atikokan, Ont. The property is
situated 100 kilometres to the west-southwest of the North American
Palladium Ltd. Lac des Illes mine where current reserves are 121 million
tonnes grading 1.62 grams per tonne (g/t) palladium (gross in situ value of
approximately $6-billion (U.S.)).
The property is underlain by the North Elbow Lake intrusion, which is the
largest of the Quetico intrusions. It is one of a cluster of five closely
spaced intrusions in the immediate vicinity, all having associated platinum
group element (PGE) and copper-nickel sulphide mineralization within the
ultramafic portions of the intrusions. All regional intrusions are
spatially associated with the Quetico fault, a prominent east-west
structure traceable for over 400 kilometres.
During the 2000 field season, a limited $50,000 work program on the
property by the private ownership group resulted in a new, significant PGE
discovery. The JR showing is hosted within coarse-grained, pegmatitic
gabbro containing locally up to 40 per cent sulphides. Surface grab
sampling to date has returned high-grade PGE up to 5.85 g/t with
copper-nickel values as high as 3.73 per cent and 0.61 per cent. The 25
grab samples taken of the hornblende-gabbro over an area of 25 metres by 25
metres averaged 1.6 g/t PGE. The sulphide mineralization consist of 2 per
cent to 5 per cent blebby chalcopyrite and pyrrhotite with local areas of
stringer and disseminated sulphides. This mineralization is similar that
observed at the Lac des Illes palladium mine.
Geological mapping completed by A.C.A. Howe International on behalf of
Imperial Platinum in 1986 concluded the following, "The northern portion of
the Elbow Lake intrusion exhibits magma mixing and low sulphide features
similar to the Roby zone at Lac des Illes."
The OGS released a lake sediment survey report in 1999 that covered the
North Elbow Lake property. Interpretation by the geologist author
identified and ranked, in order of priority, 30 anomalous areas from the
survey. The No. 2 ranked area is the North Elbow Lake property based on
anomalous levels of Pt, Cu, Ni, Cr and Au.
Denstone considers the North Elbow Lake property to be a high priority and
will aggressively focus on defining and expanding the newly discovered JR
showing. The company anticipates that a diamond drilling program is
probable as part of the year one work commitment of $250,000.
Completion of the acquisition is subject to Canadian Venture Exchange
acceptance.
On other related matters, Denstone announces the appointment of Robert
McIntosh to its board of directors followed the resignations of David Brook
and Ronald Paton. Mr. McIntosh has agreed to act as Denstone's chief
executive officer and president following the resignation of Robert
McMorran. Mr. McMorran will remain a director and replaces W. Barry Girling
as chief financial officer and secretary.
Mr. McIntosh is a graduate in geology from the University of Western
Ontario with over 18 years of proven experience in mineral exploration and
corporate development. He has designed, implemented, executed and managed
programs in precious and base metals, diamonds, and oil and gas in Canada
and abroad for both public and private companies. Mr. McIntosh is president
of Tyrrell Geological Services Ltd., a private Vancouver-based geological
consulting firm and brings the company some needed PGE experience.
(c) Copyright 2001 Canjex Publishing Ltd. stockwatch.com |
