Noranda Minerals, a division of Noranda (TSE), has acquired an additional 364,745 common shares (3.9%) of Freewest Resources (TSE). Purchased at $4 each as part of a financing agreement between the two companies, the additional shares give Noranda a 9.71% stake in Freewest. Noranda affiliate Hemlo Gold Mines (TSE) owns 151,515 shares or 1.63% of the junior.
Freewest has a 40% stake in the 5-claim Holloway gold property, where the Lightning zone is estimated to contain preliminary reserves of 4.7 million tons grading 0.24 oz. per ton. Noranda owns the remaining 60% of the property.
Although three rigs have been active on the Lightning zone since early January, the partners have yet to release results from this year’s drilling. According to Jim Gibson, manager of evaluations for Noranda, deeper holes on the eastern extension of the zone have slowed the pace of the drilling considerably. One of the three rigs currently stationed at the property is being used to test potential shaft sites, he added.
He said results from a batch of 15-20 deep holes would be released soon, but refused to give a date for the release.
Drilling is likely to continue on the Freewest property until late spring. At that point, the partners hope to have outlined a reserve big enough to justify an underground program.
Noranda says it bought the additional Freewest shares for investment purposes, and may acquire additional shares depending on market conditions and other factors. An additional 175,255 shares are available for purchase under the financing agreement.
Freewest recently traded at $3.30 on The Toronto Stock Exchange.
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