Sierra Madre Resources (VSE) has signed an option agreement with Jamie Frontier Resources (COATS) giving Sierra the right to earn a 50% interest in Jamie’s Todd gold property. Located near Red Lake, Ont., the Todd property consists of 15 claims. Past exploration work has outlined reserves of 72,500 tons grading 0.4 oz gold per ton, Jamie says.
Underground workings were established on four levels off the first shaft. Another level was driven from a second shaft on the property. Sierra is planning a $500,000 exploration program designed to test the strike and depth potential of the mineralized veins near both shafts.
Sierra can earn its interest by spending $2.5 million on exploration by 1990 and making cash payments to Jamie of $600,000. Last month, Jamie said that the same option had been granted to Cherly Resources (VSE). The option was actually negotiated by Prime Capital which originally planned to assign the deal to Cherly and instead put it in Sierra. Prime is controlled by British Columbia promotor Murray Pezim and Corona Corp.
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