Breakwater to drill Lenora gold claims for base metals

Vancouver-based Breakwater Resources (TSE) has optioned Greater Lenora Resources’ (TSE) Orvilliers and Puisseaux twps. property in Casa Berardi, Que. Low-grade gold values over narrow widths have already been reported by Greater Lenora which has completed about 50,000 ft. of drilling on the property to a maximum depth of 1,000 ft.

While Lenora spokesman Glen Kasner said his company had a tough time trying to line up those holes, the proximity of the property to Golden Hope Resources’ (VSE) Estrades gold-silver-copper-lead- zinc deposit has encouraged Breakwater to take a look for base metals on Lenora ground.

Breakwater is already earning a 70% stake in the Estrades project where proven and probable minable reserves stand at 941,400 tonnes of grade 5.60 grams (0.16 oz.) gold per tonne, 183 grams (5.3 oz.) silver, 0.96% copper, 0.92% lead and 10.69% zinc. The deposit is 300 ft. south of the border, separating Golden Hope from Lenora ground.

Under an agreement with Greater Lenora, Breakwater can earn a 51% stake in the property by spending $2 million on exploration and making a $150,000 cash payment by Dec. 31, 1994. Breakwater can increase its interest to a maximum of 60% by spending an additional $1.8 million.

Upon exercising the option, the two companies will proceed as joint venture partners with Greater Lenora holding either 49% or 40% depending on how much Breakwater elects to spend.

If either party is reduced to less than 5%, their interest would be converted to a 1% net smelter return royalty, while the original vendors retain a 2% net smelter royalty.