Sharpe Energy deals with Crude at Mishibishu (April 24, 1989)

Although not yet finalized, this junior company has entered into an option agreement with Central Crude under which it could earn a 49% interest on 60 claims in Groseilliers Twp., tying on to the immediate east of Crude’s main Eagle River property now being developed underground in a joint venture with Hemlo Gold Mines (TSE).

The agreement calls for the Sharpe firm to pay Crude’s staking costs and 200,000 shares of treasury stock, with a commitment to spend $250,000 per year for three years. This property is subject to a sliding royalty of 2-3% net smelter return.

An airborne electromagnetic survey carried out on the property showed a series of structural anomalies that require follow-up and initial prospecting revealed the presence of gold mineralization in four quartz vein systems. A new work program is currently being prepared, President Walter Sharpe, a well known geophysicist, told The Northern Miner.

R. E. Nemis and V. Noble Harbinson, president and vice- president respectively of Central Crude, will be going on the Sharpe company’s board. While it has cash on hand of about $245,000, plans are already afoot to raise additional funds for this particular project, Sharpe says.

Sharpe Energy, which concentrated on a gold play in Newfoundland last year, will not be giving up there, Mr Sharpe emphasises. Indeed, there is a good chance that one of the major companies active in that area will participate in the further exploration of its 300 claim block there, he says.

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