Major General Resources Ltd -
Green Bay drilling begins
Major General Resources Ltd
MGJ
Shares issued 35,650,047
1998-08-07 close $0.33
Monday Aug 10 1998
Mr. Bernard Kahlert reports
Major General Resources has been advised by its partner, Rio Algom Exploration, that diamond drilling
has begun on the Green Bay base metal property in Newfoundland. This drilling is designed to test two
induced polarization anomalies in the western and eastern parts of the project area.
One of the drilling targets is on the Butler option property, in which the company can earn a 100 per cent
equity interest, subject to a 1 per cent nsr. The second target is on the Indian Brook option, in which the
company can earn a 60 per cent interest by making property expenditures and cash payments to vendors
Newfoundland Mining & Exploration.
Rio Algom commenced ground surveys in May of this year and is currently conducting a 50km IP
survey on the property.
The properties covered by the Major General-Rio Algom joint venture are underlain by felsic volcanic
sequences of the Catcher's Pond formation which are closely related to the nearby Buchans rock
sequence. The Buchans mines produced very high grade, volcanogenic type (VMS) base and precious
metals over a 50-year period ending in 1976. Total production exceeded 16 million tons grading over 22
per cent base metals with high silver and gold values.
Rio Algom may earn a 50 per cent interest in all of Major General's 25,000 acre, 600 base metal claim
holdings at Green Bay by spending $2 million over four years, as announced Jan. 19, 1998. To extend
the option agreement to 1999, Rio Algom must expend $400,000 on the property in 1998.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com |
