Nevada and Washington properties being acquired
Adikann Goldfields Ltd ADK
Shares issued 15,161,830 Dec 16 close $0.06
Tue 16 Dec 97 News Release
Mr J. Graham Douglas reports
The company has entered into agreements to option the Table Top property in
Nevada and the Lone Ranch property in Washington State.
To earn a 100% interest (subject to a variable 3% to 4% nsr) in each set of
claims, the company must pay to the vendor the following advance minimum
royalty payments:
Table Lone
Top Ranch
On execution of the
agreement Dec 10/97 $5,000 $8,500
On 1st anniversary $15,000 $15,000
On 2nd anniversary $25,000 $25,000
On 3rd anniversary $35,000 $35,000
On 4th anniversary
& on each anniversary
thereafter $50,000 $50,000
The company also has the right to make the above payments at its discretion
by 50% in cash and 50% in shares, with the price of the shares to be
determined by the ten day average trading price immediately prior to the
payment date. The company has the right to buy out these royalty
obligations at any time for US$5,000 each. Certain of the Lone Ranch claims
are subject to option with another company which expires August 5 2004 and
which contain a buy out clause of US$100,000 payable at the end of the
term. If the company elects to buy out this option, the vendor has agreed
to forgo the equivalent advanced minimum royalty payment until the company
has been reimbursed for the US$100,000. In addition to the above payments,
the company is required to keep the claims in good standing during the term
of the respective agreements.
The Table Top project lies 8 miles southwest of the town of Winnemucca,
within the Sleeper-Relief Canyon gold belt of north central Nevada. Current
and past producing gold mines near the Table Top claim block include
Sleeper, Florida Canyon, and Relief Canyon.
The Table Top project contains silicified and sulphide mineralization
hosted in limestones, similar to the mineralization at the nearby Florida
Canyon and Relief Canyon mines. Past work on the property has included
mapping, rock sampling, trenching and 10 RC drill holes (3,350 ft). Work to
date has identified an anomalous gold zone 420 feet long and approximately
20 ft deep. Previous drill intercepts include 0.029 oz/ton gold over 50 ft,
0.028 oz/ton gold over 10 ft and 0.014 oz/ton gold over 10 ft. The company
plans to drill test the property in the early new year in previously
outlined areas of interest.
The Lone Ranch project lies 35 miles north of the town of Republic and 12
miles south of the town of Grand Forks, BC within the mineral rich Republic
Graben of northeastern Washington State. Old gold mines near the Lone Ranch
property include the Republic mine (3,000,000 oz past production), and the
Crown Jewel (1,600,000 oz past production) in addition to six other small
mines which produced between 200,000 and 500,000 ounces.
The Lone Ranch project contains a mineral rich horizon containing lenses of
disseminated to massive sulphide (pyrrhotite, pyrite and arsenopyrite)
mineralization that can be traced on surface for the entire length of the
claim block, a distance of approximately five miles. Past work on the
property has included mapping, rock and soil sampling, ground geophysics
and 10 diamond drill holes (3,068 ft). Previous drill intercepts include
0.291 oz/ton gold over 3.5 ft, 0.031 oz/ton gold over 54 ft, 0.156 oz/ton
gold over 3.5 ft, 0.035 oz/ton gold over 46.5 ft and 0.053 oz/ton gold over
41.5 ft. The property also contains a short adit that returned assay
intervals of 0.10 oz/ton gold over 105 feet and 0.10 oz/ton over 45 feet. A
former operator of the property indicated that there could be a resource of
approximately 1.2 million tons of material grading greater than 0.10 oz/ton
gold from one small area within the large target horizon as well as the
potential for more through the entire length of the property. The company
plans to thoroughly evaluate the old data and complete field exploration
leading to a drill program later in the new year.
The acquisition of these projects is in line with the company's recent
decision to diversify from its operations in Africa to North American
opportunities which can be efficiently managed from the company's Vancouver
base.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com |
