Oct 03, 2002
Kermode Expands Jackson's Arm Gold Project
Kermode Resources Ltd. has expanded its Jackson's Arm gold project in Western Newfoundland by entering into a property option agreement with Cornerstone Capital Resources Ltd.
The agreement gives Kermode the right to earn 100% interest in Cornerstone's Coney Arm property by issuing 20,000 Kermode shares to Cornerstone and spending $60,000 on the property over three years. Cornerstone may retain a 3% net smelter royalty of which Kermode may purchase up to 1.5% for $500,000 per 0.5% or Cornerstone may elect to purchase a 35% interest in the property from Kermode by paying Kermode 65% of Kermode's expenditures at the date of purchase. Cornerstone retains the right to develop any of the property's limestone deposits for construction purposes provided that they do not contain economic gold mineralization.
Kermode's Jackson's Arm property now covers 2,600 hectares (104 claims) over a 17-kilometre strike length of favourable, underexplored geology. Kermode plans to carry out exploration for Carlin-type gold mineralization on the Jackson's Arm property. Preliminary examination of drill data from the previous work on the property has revealed an intersection of 1.1 g/t gold over 23.35 metres within a larger 35.32 metre-long zone of consistently elevated gold values in the calcareous shales and shaley limestones of the Forteau Formation overlying the granite. Little or no work has been carried out on the property focussing on Carlin-type mineralization.
ON BEHALF OF THE BOARD OF DIRECTORS
"Donald G. Moore"
Donald G. Moore
PRESIDENT & DIRECTOR
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