Canreos Option 1987 Canreos acquires option to buy Melba mine property
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1987-09-14
The old Melba gold mine near Kirkland Lake, Ont., is being bought by Canreos Minerals (1980) under an option agreement from Nordex Explosives for an aggregate price of $750,000. Canreos President Koos Schippers said he thinks exploration work on the Melba property could begin this month. Mr Schippers is also vice-president of mining Ontario for Belmoral Mines, which is managing the Canreos interests. Canreos is an affiliate company of the Belmoral group.
The Melba property consists of 183 unpatented mining claims and five patented claims which were explored by a 246-ft inclined shaft. More than 900 ft of lateral work was done at the 185-ft level; drilling consisted of 23 hole s for a combined 6,076 ft. Also drilled underground were 25 holes over a length of 1,771 ft
Four gold-bearing veins are known on the property, two of which, the Blue and Breccia, have been explored to some extent. The Blue vein has been traced by trenching over 900 ft and for another 500 ft on strike to the southeast by drilling. Ore reserves are estimated to be 18,300 tons averaging 0.25 oz gold per ton to the explored depth of 185 ft. Below the ore grade section, 225 ft east of the shaft and 125 ft below the 185-ft level, hole No 18 intersected 3.51 oz across a true width of 1.5 ft.
On the Breccia vein, underground hole Y-60 intersected 2.55 oz over 4.3 ft, hole No T-60 intersected 0.42 oz over 6.5 ft and hole Q-60 intersected 1.49 oz over 3 ft.
Under the terms of the agreement, Canreos receives an 85% undivided interest in the claims, having paid Nordex $150,000 and subject to payments of $75,000 by Jan 3, 1988, $125,000 by July 3, 1988, $200,000 by July 3, 1989, and $200,000 by July 3, 1990.
In addition, Canroes is committed to spending $250,000 on exploration work before July, 1988, and an additional $250,000 on exploration by July, 1989.
Nordex will receive a royalty of $2 per short ton of ore mined and processed from Melba.