News releaseBeaufield to acquire Hiawatha gold mine
Beaufield Consolidated Resources Inc BFD
Shares issued 22,930,311 Oct 10 2002 close $ 0.20
Tuesday October 15 2002 News Release
Mr. Jens Hansen reports
BEAUFIELD ACQUIRES OPTION ON HIAWATHA MINE PROPERTY AND ASSOC ...
Beaufield Consolidated Resources has executed an agreement to acquire a 100-per-cent interest in the Hiawatha gold mine property and its surrounding claims.
This property, which is approximately 1,906.5 hectares, is located in Lizar Twp, Que., approximately 90 kilometres northeast of Hemlo. It is northeast of, and adjacent to, Freewest Resources's Lizar gold project, which was recently optioned to Teck Cominco. The Beaufield property consists of one block of staked claims (1,808.0 hectares) and one block of patented claims (98.5 hectares).
To acquire a 100-per-cent interest in the staked claim block, Beaufield will pay each of four of the staked claimholders 100,000 shares of Beaufield. The fifth claimholder, a non-arm's-length director and officer of Beaufield, will receive $1.00. Each of the five staked claimholders will also receive a 0.4-per-cent net smelter return royalty.
To acquire a 100-per-cent interest in the patented-claim block, Beaufield will pay the patented claimholders a total of $100,000 on Jan. 1, 2007. This block will also be subject to a 2.0-per-cent net smelter return royalty. Both the purchase payment and the net smelter return royalty will be allocated to the current patented claimholders on a pro rata ownership basis.
This agreement is subject to the approval of the TSX Venture Exchange.
Development of the Hiawatha Gold mine started in 1936, but was discontinued with the outbreak of World War Two. The results of past surface and drill sampling indicated that gold was found over two major mineralized zones.
In the South zone significant gold values were obtained at various intervals along a strike length of over 4,000 feet. The host was a series of more or less parallel sheared horizons with mineralized quartz veining in a granodiorite sill. The North zone was also traced about the same distance along strike. This zone occurs on the north side of a thin felsic unit within mafic volcanics.
Most of the underground work was concentrated on the South zone where exploration was carried out via a 325-foot shaft with levels established at 150 and 275 feet.
Beaufield's initial strategy will be to focus its exploration efforts on the entire claim block which it considers very prospective for gold.
In other Hemlo area activity, Sparton Resources has mobilized a diamond drill to Beaufield's Hemlo Cedar Creek property. Drilling is expected to begin in late October.
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