Aurora drills Foy

A first phase of drilling by Aurora Platinum (ARP-V) is testing a polymetallic showing at the Foy property, near Sudbury, Ont.

Aurora can earn 60% interests in the Foy and nearby Footwall properties from Falconbridge (FL-T) by spending $6 million on exploration over three years. All expenditures thereafter would be funded on a pro rata basis.

As part of the deal, Falconbridge can increase to 70% its stake in any deposit discovered by advancing it to production. The major can recoup the development costs from 90% of the net cash flow arising from any mine developed.

Situated along the northern range of the Sudbury igneous complex, Foy covers 10.5 km of the Foy offset dyke. The dyke hosts several showings (results from 150 channel samples are pending) and electromagnetic anomalies, many of which were recently discovered by Aurora.

The drill campaign will total 5,000 metres and focus on a nickel-copper-platinum-palladium showing which is 700 metres long and 200 metres wide. Several holes will be drilled to a depth of 800 metres, to be followed by down-hole geophysics.

Meanwhile, Aurora has raised $6.4 million in gross proceeds by issuing 2.3 million special warrants in a private placement. A special warrant entitles the holder to one share and half of a regular warrant, which, pending a prospectus to qualify them sooner, are subject to a hold period expiring on Nov. 10, 2001. By then, a full warrant will be convertible to a share at $3.50.