Stroud buys two Ontario gold projects

Toronto-based Stroud Resources (TSE) has assumed total ownership of the Hislop Twp. and Leckie gold projects in northeastern Ontario.

The junior bought a 20% net profits interest in the Hislop deposit from Gunnex for 700,000 Stroud shares, as well as a capped royalty interest in the same project from Chevron Minerals for $18,000.

Reserves at Hislop, 45 miles east of Timmins, are estimated at 1.1 million tons averaging 0.18 oz. per ton.

A preliminary evaluation, based on the current gold price, indicates 15,000-20,000 oz. can be mined annually from three zones.

Almost 1 million tons of ore are hosted in the Creek and Creek extension zones, which remain open at depth and along strike. In addition, Stroud President George Coborn says potential exists for finding other zones. A mining plan is expected to be in place before 1995; it will entail putting down a ramp on the Creek zone and taking a bulk sample.

Meanwhile, Stroud has bought a 70% working interest and a 4% net smelter return royalty in the Leckie project, north of Temagami. These were acquired, respectively, from Homestake Mining (NYSE) for 50,000 Stroud shares and from prospectors for 700,000 Stroud shares.

The project has returned significant values from a silicified shear zone with a known strike length of at least 1,500 ft.

Drilling in 1989 indicates gold mineralization extends to a depth of at least 1,000 ft. and appears to plunge to the south. In addition, a new structure has been discovered near surface and south of the Main zone. Additional drilling will attempt to increase reserves, which now stand at 314,000 tons averaging 0.22 oz. gold.