1% NSR Baird Township, Ontario - Red Lake Camp
In 1993 United Reef sold its 50% interest in 50-patented claims
and 7-unpatented claims to Madsen Gold Corp. The claims (formerly
the Aiken-Russet Property) are contiguous to the former Madsen Mine
property in Baird Township, Ontario. In 1998 Madsen was taken over
by Claude Resources Inc. in a share exchange offer. Claude subsequently
entered into a joint venture agreement on all of their Red Lake
properties with Placer Dome who commenced exploration on these
properties in 2001. By year end of 2004, Placer Dome had met its
exploration expenditure requirement of $8.2 million for the Madsen
properties and thereafter Placer Dome was required to provide a bankable
feasibility study to Claude by Dec. 2006 to vest their interest.
However, prior to completion of a feasibility study Placer Dome was
taken over by Barrick and Placer Dome's Red Lake assets were acquired by
Goldcorp in May 2006. Claude reacquired control of its Madsen properties
effective Sept. 1, 2006 from Goldcorp.
Four of six high priority exploration targets on the Madsen properties
identified by Claude lie partially within the Aiken-Russet Property,
which is the subject of United Reef's 1% NSR. Claude recently announced
(Feb.'08) drill program highlights including 29 g/t Au over 2 m on one of
these exploration targets (Russett South) and has recently deployed one of
its drilling units to its Polymetallic target situated almost entirely on
the Aiken-Russet claims.
United Reef retained a 1% NSR for all precious metals on the claims.
The royalty is capped at a maximum of $1 million CDN.