A large-scale exploration project on Golden Hope Mines’ (COATS) gold-base metal properties in the Eastern Townships area of Quebec is about to begin, thanks to a financing commitment from St. Genevieve Resources (TSE) and Stratmin (ME). The two companies have agreed to spend $9 million on the properties through three subsidiaries over a 3-year term. Each will spend $3 million to gain a 50% interest in one of three properties.
In addition, two of the subsidiaries, Duverny Explorations and Vauquelin Mines, have agreed to purchase 300,000 common shares at $1 per share through a private placement and will receive warrants to purchase an additional 300,000 shares at $1.30 per share. Duverny is a subsidiary of Stratmin while Vauquelin is a subsidiary of St. Genevieve.
The Bellechasse project area is made up of 262 mining claims in Bellechasse, Panet and Ware twps. It covers 18 miles of the Bellechasse mineral belt, an alignment of mineral occurrences including deposits of gold-quartz-sulphide and gold- bearing polymetallic massive sulphides.
As a result of an ongoing exploration program over the past five years, Golden Hope has established a large inventory of promising anomalies, many of which are ready for drilling says President Theodore Polisuk.
A firm commitment of $2 million will finance exploration in the coming year. Immediate efforts will focus on bulk sampling and mill- testing of the Bellechasse gold deposit, a concentration of gold- stockwork mineralization covered by a thin layer of overburden. The deposit is minable by open pit method.
Other priorities include further reserve delineation on the Champagne polymetallic massive sulphide deposit, which currently contains 290,000 tons grading 0.06 oz. gold, 0.58 oz. silver, 2.7% zinc, 0.5% lead, and 0.4 % copper, and property-wide diamond drilling of established showings and anomalies.
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