Letters to the Editor Coronation: a Canuc/Orofino venture

I refer to the article on page 13 of the issue dated Sept 19, 1988, of The Northern Miner headed “Orofino drill results.”

The opening sentence of the article is misleading in that reference is made to “The first drill results have been received by Orofino Resources (TSE) from the company’s Coronation Gulf property in the Northwest Territories.”

The property at Coronation Gulf remains in the name of Canuc Resources (TSE). Pursuant to the terms of a joint venture agreement, Orofino is obligated to spend an accumulated amount of $5 million before Feb 28, 1998 (including the completion of an economic analysis) in order to earn a 70% interest in the property. Thereafter, Canuc will have the right to buy back a 10% interest for $1,071,428.

Orofino has brought a third party, Dore Norbaska Resources (TSE) into the joint venture with a right to earn up to 3/7ths of Orofino’s interest in the property.

We appreciate your interest in the progress of our exploration program and trust that our comments will be useful to you in the course of disclosing the results of the joint venture. W. J. Clarry President Canuc Resources Toronto, Ontario