THV I recall some insider buying on this one
Thelon Ventures to acquire Sonore property
Thelon Ventures Ltd THV
Shares issued 5,231,051 Oct 21 close $0.18
Wed 22 Oct 2003 News Release
Mr. Glen MacDonald reports
GOLD PROPERTY ACQUIRED
Thelon Ventures has entered into an option agreement with Peter Bambic of
Hull, Que., whereby Thelon can acquire the exclusive option to earn up to a
100-per-cent interest in the 1,793-acre Sonore gold property in the Abitibi
greenstone belt, near Val d'Or, Que. This acquisition is part of Thelon's
long-term strategy of building a diverse portfolio of projects with
world-class potential. The Sonore property is on the immediate northern
boundary of a one-million-ounce producer, the Beaufor/Perron gold mine.
This mine is located on the eastern edge of the Bourlamaque batholith, and
has reserves and resources of 1,921,000 tons with a grade of 0.22 ounce per
ton. In 2002, Beaufor/Perron produced a total of 56,000 ounces of gold was
at a cost of $163 per ounce. Additional exploration has more than replaced
the ounces mined.
The Abitibi greenstone belt of Canada, has produced over 140 million ounces
of gold. It is one of the world's most prolific gold and base metal regions
that continues to generate over one million ounces a year. The district of
Val d'Or accounts for 15 million ounces from 27 mines. Two of these, Sigma
and Lamaque, produced 10 million ounces during a 65-year period.
Gold mineralization in this camp is associated with quartz veins that form
in brittle dikes or granitic rocks. When gold bearing structures intersect
these harder bodies, they crack and veins are formed. As a result, most of
the mines are located in and around the Bourlamaque batholith and various
brittle dikes.
Thelon's Sonore property contains two mineralized zones one-half-mile
apart: the southern one is an early 1940s gold resource with 181,400 tonnes
of 0.25 ounce per tonne (Quebec government report, ET 96-01, Desrochers,
1996). This resource calculation does not conform to current CIM reserve
reporting standards; the northern one contains drill intersections (El Coco
Explorations Ltd., 1979) of 16.5 and 3.6 feet with grades of 0.344 and 0.73
ounce per ton. These holes are 240 feet apart.
The property contains 2.5 kilometres of the margin of the Bourlamaque
batholith, a known host of gold mineralization in the Val d'Or camp. It
also contains a north-south ultramafic dike 800 feet east of the batholith.
This body will fracture in a similar fashion to the batholith, and will be
a large source of iron necessary to form pyrite. Gold drops out of solution
when the fluids form pyrite.
The terms of the property acquisition provide for Thelon to earn a
100-per-cent undivided interest in the property through staged payments of
$160,000, the delivery of 1.25 million common shares of the company and
incurring a total of $1.1-million of work expenditures on the property,
within five years, after receipt of exchange approval. There is a firm
commitment to spend a minimum of $100,000 on exploration in the first year.
The property is subject to a 2-per-cent net smelter return royalty on any
mineral production from the property. Thelon has the option to purchase
one-half of this royalty for $1-million.
A finder's fee in accordance with TSX Venture Exchange regulations is
payable to Mark Tommasi in respect of this acquisition.
"A considerable amount of study has gone into gold mineralization in the
Val d'Or camp since the mid-1980s. New ideas are helping junior mining
companies to discover new gold zones. The Thelon property has not been
exposed to this," says Glen MacDonald, PGeo, a director.
The company is planning a program to further explore the property with
geophysical surveys and core drilling to commence shortly. Mike Magrum a
qualified person under NI 43-101 has reviewed and approved the technical
data in this release.
