Consolidated Ramrod Gold (TSE) intends to buy Chapleau Resources’ (VSE) interest in the FORS and Jor properties in southeastern British Columbia. The purchase price is $1.5 million.
Meanwhile, Chapleau has agreed to subscribe for 500,000 units of Ramrod at $2.90 per unit, effectively covering the cost of the purchase. The units include one share plus a warrant to buy an additional share at $3.25 for a 3-year term.
Consolidated Ramrod is earning a 60% interest in FORS from Barkhor Resources (VSE) and joint-owner Chapleau by spending $2 million, $750,000 of which has been spent.
Drilling is continuing in an attempt to locate massive sulphide zinc-lead mineralization similar to that found at Cominco’s Sullivan mine, 40 km to the north.
The company has drilled six deep holes to test the Sullivan horizon as well as 15 shallow holes to test an alteration zone, returning narrow lead-zinc intersections. The deep drilling returned sulphide fragments, but no economic mineralization.
The shallow and deep holes will be used for down-hole geophysics and Consolidated Ramrod expects to continue working, through 1993, on FORS and adjoining properties held under option.
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