Steve, As predicted, Canuc's next move was announced today. It seems to be quite practical under the circumstances. I think that on weighing all the options this seems to be the best that Canuc could have hoped for. About 320,000 shares trading today @~ 0.15c, thus suggesting that some investors are giving Canuc the benefit of the doubt on this one. Either that or they saw the 2,000,000 ounces for a stock selling at 15c. An excellent opportunity to average down Steve, Hub is back to where he was before Placer came onboard. :
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: CANUC RESOURCES CORPORATION
CANADIAN DEALING NETWORK SYMBOL: CANC
FEBRUARY 10, 1998
Canuc Resources Corporation Reaches Agreement with Placer
Dome Inc. to Change Terms of Option on its Nambija
Property
TORONTO, ONTARIO--Canuc Resources announces that it is finalizing
negotiations with Placer Dome Inc. to amend the Option Agreement
made with Placer Dome's wholly-owned subsidiary for the Company's
Nambija Project, Ecuador. The amendments will extend the dates by
which Placer Dome will have to make cash payments to Canuc, and to
fulfill its Work Commitment in order to exercise its initial
Option. Canuc, in return, will have the dates for fulfillment of
completion of the purchase of remaining mining rights extended by
a similar period. As well, Canuc will have the ability to carry
out exploration and development work on the western half of the
Property. This includes the Gold Star Mine, a former producer,
with a view of returning the mine to profitable production.
Mr. H. J. Mockler, President of Canuc, stated: "Canuc and Placer
Dome agree that, based on the significantly reduced world price of
gold and the results of exploration work to date, more work and
time are needed to understand the geology of the eastern half of
the Property, which includes the El Tierrero area. The very
limited drilling to date has not demonstrated sufficient
widespread mineralization to develop a large, low grade, open pit
mine. However, historical production records and conformability
work done by Placer Dome and Canuc have shown that the Property
has several relatively small but high grade deposits, the most
significant of which is the Gold Star Mine.
"At the time Canuc acquired the Gold Star Mine it was producing
about 12,000 ounces of gold annually using primitive mining and
milling methods. Canuc's management is of the opinion that by
using modern mining methods and utilizing the facilities of a
nearby mill it could reach a daily production rate of 500 tons a
day in the near term. Given an average grade of 0.23 ounces of
gold to the ton this level of output would yield 35,000 ounces of
gold per year. In addition to the Gold Star, there are at least
two and possibly three other similar types of deposits all of
which can be accessed via the Gold Star workings. When all of
these individual deposits are taken into account, we believe it is
highly probably that the annual gold output could be increased
substantially. We further believe that all of this can be
achieved with a modest capital expenditure. Extensive underground
sampling carried out by Canuc over the past two years indicates
that the Gold Star Mine has a resource potential of over 2.0
million ounces. We are confident that a detailed exploration and
development program will convert these ounces from a resource
potential to a proven and mineable category."
In preparation for carrying out these plans the Company has
engaged the services of Mr. Michael Seaward, an independent mining
consultant, to prepare a preliminary ore reserve and feasibility
report. On receipt of this study, Canuc intends to commence work
immediately to implement Michael Seaward's recommendations.
Canuc currently has 41,505,294 common shares issued and
outstanding. The common shares of Canuc are quoted on the
Canadian Dealing Network ("CDN") under the symbol "CANC".
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FOR FURTHER INFORMATION PLEASE CONTACT:
Canuc Resources Corporation
Mr. H. J. Mockler
President
(416) 861-1422
(416) 861-1478 (FAX) |
