Results are in hand for five holes drilled by Barrick Gold (TSE) on the Michaud project, in which Nufort Resources (TSE) holds royalty interests.
The project is 12 miles west of Barrick’s Holt-McDermott gold mine in northwestern Ontario and covers almost four miles of strike length of the Destor-Porcupine deformation zone.
The five holes were completed on the Nufort block over a strike length of 8,000 ft.
Hole 175 intersected 1.9 grams gold per tonne over a core length of 6.1 metres, followed by a section of 2.3 grams over 18.6 metres (including 4.2 grams over 5 metres), 1.7 grams over 42.7 metres, and 7.1 grams over 1.5 metres. These intersections are believed to represent the eastern extension (from the Moneta block) of the Southwest zone.
Hole 178, 5,000 ft. west of 175, assayed 1.2 grams over 15 metres, 1.4 grams over 0.5 metre and 3.5 grams over 11 metres (including 5.7 grams over 6.3 metres). More results are expected from this hole.
Hole 174, 3,000 ft. west of 178, tested a new anomaly and returned 2.1 grams over 15.8 metres (including 4.5 grams over 6.2 metres), 1.2 grams over 4.1 metres and 17 grams over 0.5 metre.
Nufort notes that intersections from holes 174 and 178 represent the western extension of the Southwest zone. Assays are expected shortly from two holes (drilled 400 ft. on either side of 174), as well as from three drill holes on the new discovery (the western extension of the Southwest zone).
Last fall, Barrick agreed to pay Nufort $150,000 by Nov. 30 of this year and spend $750,000 on the Michaud properties. Barrick also agreed to pay Nufort a further $350,000 and spend an additional $1.25 million on exploration by Nov.
30, 1998, or forfeit its interest.
Nufort will retain a 2% net smelter return (NSR) royalty as well as a 7% net profit royalty related to production from the entire project area. Barrick can acquire half of the NSR for $1 million.
If Barrick meets its obligations, it will own the project (subject to the above royalties). Moneta Porcupines Mines (TSE) holds rights to back-in for a 30% interest in the project area.