In a deal which could be worth $4.05 million, Aranlee Resources (VSE) has optioned its Quet property to Noranda Exploration, a wholly owned unit of Noranda (TSE). Noranda can earn a 60% interest in the Quet property, 57 miles northeast of Vancouver, B.C., by purchasing $500,000 in treasury shares at prices between $1 and $4 per share and by making expenditures of $3.55 million on the property over a 4-year period.
Noranda has guaranteed to make an expenditure of $300,000 this year and must spend a minimum of $500,000 to retain the property. This season’s program will include further trenching, detailed geological mapping, ground and airborne geophysics, and diamond drilling. Noranda must also buy 50,000 shares of Aranlee at $1 per share this year.
Aranlee noted that work on the property during the past two field seasons has outlined a large zone of precious and base metals in altered volcanics.
The unit has been mapped for a strike length of 5,000 ft. with thicknesses of up to 300 ft. Trenching at the eastern end of the zone returned gold values of 0.06-0.12 oz. per ton over widths of up to 60 ft. Cross- faults in the area carried grades of up to 26% combined lead-zinc over 3-ft. widths.
Aranlee believes the area could host a volcanogenic massive sulphide deposit similar to the giant Brittania mine (1888-1975), 40 miles to the west.
The company has about three million shares outstanding and $200,000 in working capital.
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