A number of company’s involved in exploration at the Larder Lake gold property near Kirkland Lake, Ont. have agreed to revise an agreement which would have given Gold Vessel Resources (ASE) a 24% in return for spending $15 million.
Under the new agreement, Gold Vessel can earn 24% by spending $7.5 million on exploration before March 1, 1990. The deal, which also requires Gold Vessel to spend $5 million before March 1, was revised because of current market conditions.
“This is not a judgement on the deposit, it’s just that raising money at the moment is very difficult,” explained Gold Vessel president Pierre Gauthier.
Operator Golden Shield Resources (TSE) which holds a 63.5% interest at Larder Lake is chasing a number of carbonate zones which it hopes to bring into production by April 1989.
At least four can be accessed via a 1,000 ft shaft and workings which exist down to the 500 ft level.
Golden Shield has already outlined about 100,000 tons of grade 0.15 oz but the company is planning to explore two new zones — the North Carbonate and the North West Carbonate — which have been drilled from surface.
Any production plans depend on the results of a bulk sample scheduled to be taken from the C and A zones, according to Golden Shield president Ray Mongeau.
Other partners in the joint venture include Rockford Minerals (TSE), Northield Minerals (ASE) and Northern Ranger Minerals (TSE).
Gold Vessel will earn a 3.2% interest for each $1 million incurred in exploration expenses.
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