Toronto-based HSK Minerals says it has gained a significant foothold in the thriving Mishibishu Lake area near Wawa, Ont., by acquiring a 100% working interest 52-claim mineral property.
HSK says the claims adjoin Central Crude’s eastern claim block adjoining land held under option by Hemlo Gold Mines. Noranda Exploration is currently drilling the Hemlo claim group as part of a major gold exploration drive.
As reported (N.M., Nov 23/87), the scale of Noranda’s drill operations suggests that the property is considered important. Channel samples from multiple gold zones assayed 0.195 oz gold per ton across 10.2 ft and 0.19 oz across 1.3 ft., Crude has reported.
Under an agreement, HSK will make the acquisition for a consideration of $10,000, 60,000 treasury shares and a variable (2% to 3%) net smelter return payable to the vendor.
Central Crude retains an undivided 25% carried working interest through to the feasibility stage. If a feasibility study is completed, Central Crude and HSK will form a joint venture.
The agreement also allows HSK to recoup, from future production, all of its pre-feasibility costs spent on the property.
“We have been trying to get into this area for some time,” said HSK President Hugh Harbinson who is already planning a first quarter geophysical program.
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