Document:

Exhibit J

                JCL
                01-30-87
                780406
                                LEASE AGREEMENT

BY THIS LEASE AGREEMENT

      effective as of the 5th day of February , 1987,

      by and between H. B. LAYNE CONTRACTOR, INC., an Indiana corporation, whose
      address  is  2500  East  Hallandale  Beach Blvd., Penthouse I, Hallandale,
      Florida 33009 (the "Lessor" herein),

            and

      ST.  JOE  GOLD  CORPORATION, a Delaware corporation, whose address is 2002
      North Forbes Boulevard, Tucson, Arizona 85745 ("St. Joe" herein),

the  Lessor,  in  consideration  of the agreements set forth herein, has granted
certain rights to St. Joe under the following terms and conditions:

1.    Grant

      a.    Lease  - Lessor hereby grants, demises, leases and lets that certain
            real property, more particularly described in the attached Exhibit A
            (the  "Property"  herein),  including, but without being limited to,
            all  soil,  sand and gravel, rock, ores, minerals and mineral rights
            in,   upon   and  under  the  Property  (the  "Leased  Substances"),
            exclusively  unto  St.  Joe,  its  successors  and assigns, with the
            exclusive rights and privileges:

                  --  to  drill  and  excavate  holes,  pits,  shafts  and other
            excavations,   to   construct   roads   and   to   conduct  surveys,
            explorations,  sampling, investigations and other operations in such
            a  manner  and  to  the  extent as St. Joe, in its sole judgment and
            discretion,  may  deem advisable for the purpose of ascertaining any
            and all facts relating to the occurrence of ores and minerals in and
            under  the  Property and the metallurgical and physi- cal properties
            of any such ores;

                  -- to mine (by open pit, strip, underground, solu- tion mining
            or  any  other  method,  including  any method hereafter developed),
            extract,  mill,  store, process, remove and market Leased Substances
            from the Property;

                  --  to  place,  construct,  maintain,  use,  and  remove  such
            structures, facilities, equipment, roadways,

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            haulaaeways and such other improvements on the surface or subsurface
            of  the Property as St. Joe may deer necessary, useful or convenient
            for the full enjoyment of all of the rights herein granted:

                  --  to  mix or commingle Leased Substances with any other ores
            produced  off the Property, provided that St. Joe shall first weigh,
            sample,   and   assay  the  Leased  Substances  in  accordance  with
            recognized industry practice;

                  --  to  conduct  any  mining  upon  the Property and St. Joe's
            mining  of adjoining or nearby lands as a single mining operation as
            if  the  Property and all such other properties constituted a single
            tract of land, in which event St. Joe shall have the exclusive right
            to use structures, facilities, equipment, roadways, haulageways, and
            all other appurtenances installed on the Property for the purpose of
            producing, removing, treating or transporting metals, ores, minerals
            or  materials  from adjoining or nearby property owned or controlled
            by  St.  Joe and the right to mine and remove Leased Substances from
            the  Property  through or by means of shafts, openings or pits which
            may be made in or upon adjoining or nearby property;

                  --  to  use  other  resources  of  the Property (to the extent
            Lessor  has  such  rights),  including water, in connection with the
            exploration, mining and processing rights granted hereunder;

                  --  to  use  the  surface  of  the  Property to deposit waste,
            overburden,  surface  stripping  and  other  materials  from  mining
            operations  on  the Property and adjoining property being mined with
            the  Property  as  a single mining operation; provided the materials
            from  other  lands  may not be deposited on the Property if it would
            interfere with mining operations on the Property.

            h.  Sublease  - St. Joe understands and acknowledges that this Lease
      is  a  sublease as to Claims Ace 1, 2 and 3 and is subject to that certain
      "Mining Lease and Option to Purchase Agreement," entered into on August 3,
      1978,  by  and between Robert A. Revert and Claron Burnett, as Lessors and
      Kelly  Minerals,  Inc.,  as  Lessee, a copy of which is attached hereto as
      Exhibit B.

2.    Term

            Unless   sooner   terminated   under   the   termination  provisions
      hereinafter contained, the term of this Agreement shall an initial term of
      three  (3)  years  commencing  on  the  effective  date  hereof; provided,
      however, that St. Joe may

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      extend  such  tern  by  making  the payments specified in sub-section b of
      Section 1.

3.    Payments to Lessor

            a.  Rental  -  St.  Joe  shall  pay Lessor as rental Twelve Thousand
      Dollars  ($12,000.00)  during  the  first one (1) year of the term nereof;
      Twenty  -Four  Thousand Dollars (S24,000.00) during each of the second and
      third  years  of  the term hereof; and Fifty Thousand Dollars ($50,000.00,
      per  year  during  each  year thereafter while this Agreement is in force.
      Such  payments shall be due in advance on or before the anniversary of the
      effective  date  of  this Agreement. Rental for the first year of the term
      shall be due upon final execution of this Agreement.

            b. Advance Minimum Royalty - After three, (3) years of the effective
      date  hereof,  or  such  earlier  time  St.  Joe  mines and markets leased
      substances  from  the  property,  St.  Joe shall pay Lessor Fifty Thousand
      Dollars  ($50,000.00) per annum, which shall constitute an advance minimum
      royalty  which  shall be payable in the same manner as set for above. Such
      advance  royalties  shall  be  a credit insofar as they will go toward any
      monies due Lessor under the provisions of subsection c of this Section 3.

            c.  Production  Royalty  -  If  St.  Joe  mines  and  markets Leased
      Substances  from  the  Property,  St. Joe shall pay to Lessor a production
      royalty of five percent (5%) of the "Net Returns' received by St. Joe from
      the  sale  or  other  disposition of Leased Substances; provided, however,
      that  St.  Joe  shall not be required to pay Lessor any production royalty
      under  the  terms  of this Agreement from the mining claims subject to the
      Mining Lease and Option to Purchase Agreement attached hereto as Exhibit B
      until  the  purchase  price  thereunder  has been fully paid. The term Net
      Returns"  shall mean the total dollar value received from the purchaser of
      Leased Substances, less:

                  (1)  in  the  case of sale of raw ore or concentrates: (a) any
            weighing, sampling, penalty, processing or other charges assessed by
            the  purchaser; (b) selling charges; (c) any sales, severance, gross
            production,  privilege or similar taxes assessed on or in connection
            with  the  ore or measured by the value thereof; and (d) the cost of
            transportation from the Property to the purchaser.

                  (2)   in  the  case  of  leaching  or  other  solution  mining
            techniques in addition to the deductions specified in (1) above, all
            processing and recovery costs incurred beyond the point at which the
            leaching reagents are applied to the ore being treated (including

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            the cost of reagents) shall be deducted from the selling price.

If  ores  or  concentrates  are  processed at a smelter or other facility owned,
operated  or  controlled  by St. Joe or treated on a toll basis for St. Joe, the
selling  price  shall  be  computed  in the above manner with deductions for all
charges  and  items of cost equivalent to the deductions extended in arms-length
transactions,  and  in any case, not more than changes that would be made at the
nearest treatment facility otherwise available.

      d.  Payment  of  Production  Royalty  -  Production royalty paid to Lessor
hereunder shall be due and payable within thirty (30) days after the end of each
calendar  quarter  for  those  Leased  Substances  sold  and  a settlement sheet
received  during  the  applicable  calendar  quarter  after  first deducting any
advance  minimum  royalty  paid  under  subsection b of Section 3 not previously
recovered  from  prior  payments under this subsection d. A11 production royalty
shall be accompanied by the settlement sheets or a similar statement showing the
basis upon which the payment was computed.

      e.  Method  of  Making  Payments  - A11 payments required hereunder may be
mailed  or  delivered  to Lessor's address or to any single depository as Lessor
may instruct. Upon making payment to the authorized agent or depository, St. Joe
shall  be relieved of any responsibility for the distribution of such payment to
Lessor.  The  delivery or the deposit in the mail of any payment hereunder on or
before the due date thereof shall be deemed timely payment hereunder.

      f.  Fractional  Interest  -  A11  payments  under  this  Agreement, unless
specified otherwise, are based on a grant by Lessor of full undivided rights and
title  to  the  Property. If Lessor's interest in the Property is less than such
full  interest, all payments made hereunder shall be paid in the same proportion
thereof  as  the undivided rights and title actually owned by Lessor bear to the
entire undivided rights and title to the Property or the areas included therein.

4.    Inspection

      Lessor (or any agent of Lessor with authorization in writing), at Lessor's
risk  and  expense,  may (1) enter upon the Property to inspect the same at such
times and upon such notice to St. Joe as shall not unreasonably or unnecessarily
hinder  or interrupt the operations of St. Joe, and (2) inspect the accounts and
records  used  in calculating production royalty paid to Lessor hereunder, which
right  may  be exercised, at any reasonable time during a period of one (1) year
from and after the date on which the applicable

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quarterly  payment  of  production  royalty was made. Lessor agrees to treat all
information  received  hereunder  as  confidential  and not to disclose the same
without prior permission of St. Joe.

5.    Obligations of St. Joe

      a.  Conduct  of Operations - A11 work performed by St. Joe on the Property
pursuant to this Agreement shall be done in a good and workmanlike manner and in
compliance  with all state or federal laws and regulations governing such opera-
tions.  The  operations  of  St.  Joe  shall be further subject to the following
special requirements:

            (1)  St.  Joe  shall pay any and all withholding and Social Security
      taxes  levied by the United States Government or unemployment compensation
      taxes  levied  by  the  Unemployment Compensation Division of the State of
      Nevada upon it as an employer and permit no delinquencies to be created;

            (2)  St. Joe shall protect all employees under the Nevada Industrial
      Insurance Act and the Nevada Occupational Diseases Act as amended, pay all
      premiums  required  by  the  laws,  rules  and regulations of the State of
      Nevada pertaining to industrial insurance;

            (3) St. Joe shall maintain records and reports and submit, according
      to  the  requirements  of  the  Inspector of Mines, reports of production,
      employment, mine activity, status, accidents, bodily injury, loss of life,
      occupational  illness  and  related  data  as  required  by Nevada Revised
      Statutes ss. 512.160 as amended.

      b.  Sublease  -  St.  Joe  hereby  assumes and agrees to keep, perform and
fulfull  all  of the terms, covenants, conditions and obligations required to be
kept,  performaed  and  fulfilled  by  the  Mining  Lease and Option to Purchase
Agreement  subleased  hereby,  including  the  making  of all payments due to or
payable to or on behalf of the lessor thereunder when due and payable, including
but not limited to advance and production royalties; provided, however, that St.
Joe  shall  have the right to surrender such Mining Lease and Option to Purchase
Agreement to the Lessor hereunder and thereby terminate any further liability or
obligation  thereunder for duties or payments not accrued as of the date of such
surrender.  Such  payments  shall  be  in  addition  to  the rents and royalties
reserved herein to the Lessor.

      c.  Weights  and  Analysis  -  In  all cases where ore or concentrates are
stockpiled  off  the  Property  or  commingled  concentrates  not mined from the
Property, St. Joe with ore or

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shall  establish procedures for determining the proportional amount of the total
metal content in the commingled materials attributable to the input from each of
the  properties  by  calculating  on  a  metallurgical basis, in accordance with
sampling   schedules  and  mining  efficiency  experience,  so  that  production
royalties  applicable  to  materials  produced  from each of the properties from
which  materials  are  commingled  may  reasonably  be determined. St. Joe shall
inform Lessor of such procedures by written statement and shall make all records
related to such activities available for inspection by Lessor in accordance with
Section 4.

      d.  Protection  from Liens - St. Joe shall pay all expenses incurred by it
in  its  operations  on  the Property hereunder and shall allow no liens arising
from any act of St. Joe to remain upon the Property; provided, however, that St.
Joe  shall  not  be  required  to  remove  any  such  lien as long as St. Joe is
contesting in good faith the validity or amount thereof.

      e.  Indemnity - St. Joe shall protect, defend and indemnify Lessor against
and   hold   Lessor   harmless   from  any  suit,  claim,  judgment  or  demand,
administrative  proceeding or sanction, expense, including reasonable attorney's
fees, whatsoever arising out of St. Joe's exercise of any of its rights pursuant
to  this  Agreement  and  the  Mining  Lease  and  Option  to Purchase Agreement
subleased  hereby,  provided  that  Lessor, or any one of them, or any person or
instrumentality  acting  on its behalf, shall not have been a contributing cause
to  the  event giving rise to such suit, claim, demand, judgment, administrative
proceeding or sanction.

      f.  Payment  of  Taxes  -  St.  Joe shall pay all taxes levied against its
improvements  on  the  Property.  In  the event of commercial development of the
Property, St. Joe shall pay all ad valorem taxes assessed against that amount of
the Property used in such commercial development and shall, in addition, pay all
taxes  related  to production of Leased Substances from the Property, subject to
St.  Joe's  right to deduct the amount of such production-related taxes from the
dollar value received from the purchaser of Leased Substances in the computation
of  Net  Returns under the provisions of subsection c(1)(c) of Section 3. Lessor
shall  pay,  before delinquency, all other taxes and assessments on Property and
improvements  of Lessor thereof. In no event the St. Joe be liable for any taxes
levied  or measured by shall Lessor, or for taxes applicable to or levied income
of  against or based upon advance or production royalty payments to Lessor under
this  Agreement.  St.  Joe  shall  have the made in the courts or otherwise, the
validity or right to contest, taxes or assessments, before it shall be amount of
any pay the same. St. Joe shall have the right, at required to

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its  sole  discretion,  to  pay  any  delinquent  property  taxes. together with
interest,  penalties  and  charges, that a the responsibility of the Lessor, the
payment of which shall be a credit against payments thereafter tc be made by St.
Joe  under  the  provisions  of  Section 3. If this Agreemdeent is terminated or
otherwise  expires, all ad valorem taxes that are St. Joe's responsibility shall
be  prorated  as  of  the  date  St.  Joe  has removed its improvements from the
Property or Lessor agrees to their abandonment.

      g.  Assessment  Work  -  St. Joe agrees to perform assessment work (unless
excused,  suspended  or  deferred)  for  the  benefit  of  the Property for each
assessment  year during which this Agreement continues in force beyond July 1 of
the  applicable assessment year. The work performed shall be of a kind generally
accepted  as  assessment  work,  and  St.  Joe  shall  expend  the  total amount
sufficient to meet the minim= requirements with respect to all of the unpatented
claims.  Lessor  acknowledges  and agrees that the mining claims included within
the  Property are one contiguous group and that development and exploration work
on  any one or more of the claims will be for the benefit of all of them. Lessor
further agrees that if St. Joe acquires a right to explore areas adjacent to the
Property by location, purchase, lease or option, St. Joe shall have the right to
perform  assessment  work  required  hereunder  pursuant  to  a  common  plan of
exploration or development of all the areas, claims or groups of claims, whether
performed on or off the Property.

6. Title Matters

      a.  Representations and Warranties - Lessor represents and warrants to St.
Joe that to the best of its knowledge and belief that: (1) the unpatented mining
claims  constituting  the Property have been located and appropriate record made
thereof in compliance with the laws of the United States and the laws of Nevada;
(2) the assessment work for the year ending September 1 prior to the effec- tive
date of this Agreement has been performed and appropriate record made thereof in
compliance  with  applicable law; (3) there is no valid claims of adverse mining
rights  affecting  such  claims;  (4) except as specified in Exhibit A, Lessor's
possessory   right  to  the  Property  is  free  and  clear  of  all  liens  and
encumbrances, and (5) the Lessor has the full right, power and capacity to enter
into this Agreement upon the terms set forth herein.

      b.  Title  Documents;  Data  - Upon written request of St. time during the
term  hereof, Lessor shall promptly Joe at any St. Joe all abstracts of title to
and copies of deliver to

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all  title  documents affecting the Property which Lessor has in its possession.
If Lessor is in possession or knows the whereabouts of technical data concerning
the  mineral estate of the Property, Lessor shall, at St. Joe's expense, furnish
copies  of  such  materials to St. Joe or notify St. Joe of the location of such
information.

      c.  Title  Defects,  Defense  and Protection - If -- (1) in the opinion of
counsel  retained by St. Joe, Lessor's title to any of the Property is defective
or  less  than  as  represented  herein,  or (2) title to any of the Property is
contested  or  questioned by any person, entity or governmental agency -- and if
Lessor is unable or unwilling to promptly correct the defects or alleged defects
in  title, St. Joe may attempt, with all reasonable dispatch, to perfect, defend
or  initiate  litigation to protect such title. In that event, Lessor shall take
such  actions  as  are  reasonably necessary to assist St. Joe in its efforts to
perfect,  defend  or protect such title. If title is less than as represented in
this  Section  6,  then  (and  only  then) the costs and expenses of perfecting,
defending  or correcting title, including, but without being limited to the cost
incurred  in  the  amendment  or  relocation  of  unpatented claims, the cost of
attorney's fees and the cost of releasing or satisfying any mortgages, liens and
encumbrances),  shall  be a credit against payments thereafter to be made by St.
Joe  under the provisions of Section 3, unless the encumbrance or dispute arises
from  St.  Joe's  failure  to  perform obligations hereunder (in which case such
costs shall be borne by St. Joe).

      d.  Lesser Interest Provisions - If the rights and title granted hereunder
are  less  than  represented  herein,  St.  Joe shall have the right and option,
without  waiving  any other rights it may have hereunder, to reduce all payments
to  be  made  to  Lessor  hereunder in the proportion that the interest actually
owned by Lessor bears to the interest as represented herein.

      e.  Amendment  and  Relocation  of  Mining Claims - St. Joe shall have the
right to amend or relocate in the name of Lessor the unpatented claims which are
subject  to this Agreement which St. Joe, in its sole discretion deems advisable
to  amend  or  relocate.  St.  Joe shall not be liable to Lessor for any act (or
failure  to  act) by it or any of its agents in connection with the amendment or
relocation  of such claims as long as such act (or omission) does not arise from
gross negligence or is not made in bad faith.

      f.  Patent  Proceedings  -  Upon  request  of St. Joe at any time or times
during  the  term of this Agreement, Lessor agrees to undertake to obtain patent
to  any  or  all  of  the  unpatented  mining  claims  which are subject to this
Agreement.

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St.  Joe  shall  prepare  all  documents  and compile all data and comply in all
respects  with  the  applicable law, all at the expense of St. Joe. Lessor shall
execute  any  and  all  documents  required for this purpose and shall cooperate
fully  with St. Joe in the patent application proceedings subsequent thereto. If
Lessor  begins  such  proceedings  and  St.  Joe  thereafter  requests Lessor to
discontinue   such  proceedings,  or  if  this  Agreement  is  terminated  while
proceedings  are  pending, St. Joe shall have no further obligation with respect
thereto  except  to pay any unpaid expenses accrued in such proceedings prior to
its request to discontinue or prior to termination, whichever occurs first.

      g. Change of Law - If the laws of the United States concerning acquisition
of  mineral  rights  on  federally  managed  lands  is repealed, amended, or new
legislation  is enacted, St. Joe shall have the right to take whatever action it
deems  appropriate  to preserve a right to explore for, develop, and mine Leased
Substances.  If  St.  Joe  elects  to  take  any  action under the terms of this
subsection,  it shall first notify Lessor in writing setting forth the nature of
the  proposed action and an explanation thereof. Lessor agrees to cooperate with
St.  Joe  and  execute  whatever  documents  are  deemed necessary by St. Joe to
accomplish  such  action. Nothing in this subsection shall impose any obligation
upon  St. Joe to take any action, or diminish the right of Lessor to take action
it  deems  appropriate;  provided,  however,  that if Lessor chooses to take any
action, it will first inform St. Joe of the nature of such contemplated action.

      h. General - Nothing herein contained and no notice or action which may be
taken  under  this  Section  6  shall  limit  or detract from St. Joe's right to
terminate this Agreement in the manner hereinafter provided.

7.    Termination; Removal of Property; Data

      a.  Termination  by Lessor - If St. Joe defaults in the performance of its
obligations  hereunder,  Lessor shall give St. Joe written notice specifying the
default.  If  the default is not cured within thirty (30) days after St. Joe has
received the notice, or if St. Joe has not within that time begun action to cure
the  default  and  does  not  thereafter  diligently  prosecute  such  action to
completion, Lessor may terminate this Agreement by delivering to St. Joe written
notice  of  such  termination, subject to St. Joe's right to remove its property
and  equipment  from  the  Property,  as hereinafter provided. Lessor's right to
terminate  this  Agreement  shall  be  its  sole  remedy for any defaults in the
payment  of rental or advance minimum royalty. If St. Joe in good faith disputes
the existence of a default, St. Joe shall initiate appropriate action in a court
of competent

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jurisdiction  within  the  30-day period and the time to cure shall run from the
date  of a final determination that a default exists. Lessor shall have no right
to  terminate this Agreement except as set forth in this subsection a of Section
7.

      b. Termination by St. Joe - St. Joe shall have the right to terminate this
Agreement  at  any  time by written notice from St. Joe to Lessor. St. Joe shall
also  have  a  separate right of termination of its obligations under the Mining
Lease  and  Option to Purchase Agreement as set forth in subsection b of Section
5.  From and after the date of termination, all right, title and interest of St.
Joe  under  this Agreement shall terminate, and St. Joe shall not be required to
make  any  further  payments  or  to  perform  any further obligations hereunder
concerning  the  Property, except payment and obligations, the due dates for the
payment  or  performance of which occur prior to the termination date, including
the obligations related to damages to the surface and improvements thereon.

      c.  Removal  of  Property  -  Upon  any  termination or expiration of this
Agreement,  St.  Joe  shall  have  a  period  of one (1) year from and after the
effective  date  of  termination  within  which  it may elect to remove from the
Property  all of its machinery, buildings, structures, facilities, equipment and
other  property  of  every  nature  and  description erected, placed or situated
thereon,  except  supports placed in shafts, drifts or openings in the Property.
Failure  of St. Joe to so remove the same shall constitute an abandonment by St.
Joe to Lessor of the same; provided, however, that St. Joe may still be required
to  remove such property upon notice from Lessor at any time during the one-year
period and thirty (30) days thereafter.

      d.  Delivery  of  Data  -  If  this  Agreement is terminated, upon written
request  given  by  Lessor  within thirty (30) days of said termination, St. Joe
shall,  within  a  reasonable  time,  furnish  Lessor  copies  of  all available
noninterpretive  exploration,  development  and  mining  data  pertaining to the
Property prepared by or for St. Joe.

      e. Relinquishment of Record - If this Agreement is terminated or otherwise
expires,  St.  Joe shall provide Lessor with a recordable document sufficient to
provide notice that St. Joe no longer asserts rights to the Proflerty under this
Agreement.

8.    Notices

      Any notice or communication required or permitted here- shall be effective
when personally delivered or under

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deposited,  postage  prepaid, certified or registered, in the United States mail
to the addresses specified above. Either party may, by notice to the other given
as aforesaid, change its mailing address for future notices.

9.    Binding Effect; Assignment

      The  rights  of either party hereunder may be assigned in whole or in part
and  the provisions hereof shall inure to the benefit of and be binding upon the
heirs,  personal  representatives, beneficiaries, successors and assigns, but no
change  or  division of ownership of the Property or payments hereunder, however
accomplished, shall operate to enlarge the obligations or diminish the rights of
St.  Joe  hereunder. No such change or division in the ownership of the Property
shall  be  binding upon St. Joe for any purpose until the first day of the month
next  succeeding  the  month  in  which such person acquiring any interest shall
furnish  evidence to St. Joe's satisfaction of such change, transfer or division
of ownership.

10.   Force Majeure; No Implied Covenants

      If  St.  Joe is delayed or interrupted in or prevented from exercising its
rights  or  performing its obligations, as herein provided, by reasons of "force
majeure,"  then,  and  in  all  such  cases,  St.  Joe shall be excused, without
liability,  from  performance  of  its  obligations  set forth in this Agreement
(except  as  to obligations to pay money set forth in Sections 3 and 5), but the
provisions  shall  again come into full force and effect upon the termination of
the  period  of delay, prevention, disability or condition. St. Joe shall notify
Lessor  of the beginning and ending date of any period of forree majeure and the
period  of  time required for performance under this Agreement shall be extended
for  the  period  of  the  disability. "Force majeure" includes all disabilities
arising from causes beyond the reasonable control of St. Joe; including, without
limitation,  acts  of  God,  accidents,  fires,  damages  to  facilities,  labor
troubles,   unavailability   of   fuels,   supplies  and  equipment,  orders  or
requirements  of  courts  or  government  agencies,  or  the inability to obtain
environmental   clearance   or   operating  permits  that  may  be  required  by
governmental  authorities.  It  is  expressly agreed that no implied covenant or
condition  whatsoever  shall  be  read  into this Agreement relating to any time
frame  as the measure of diligence for prospecting, mining, resumption of mining
if  mining  operations  once commenced are suspended, or any other operations of
St. Joe hereunder.

.. . .
.. . .

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<PAGE>

11.   Memorandum

      The  parties to this Agreement agree to execute and record a Memorandum of
this Agreement in a form sufficient to constitute record notice to third parties
of  the  rights granted hereunder, which may be recorded in the official records
of Nye County, Nevada.

12.   Construction

      a.  Governing Law - This Agreement shall be construed by the internal laws
but not the laws of conflict of the State of Nevada.

      b. Headings - The headings used in this Agreement are for convenience only
and  shall  not  be  deemed  to  be  a  part  of  this Agreement for purposes of
construction.

13.   Approval; Effective Date

      This  Agreement  shall  not  be  effective  until  it has been approved by
management of St. Joe and executed by its authorized officer. The effective date
shall be the date of such execution by St. Joe.

          SIGNED, effective as of the date recited above.

LESSOR:                                         ST. JOE:
H. B. LAYNE CONTRACTOR, INC.                    ST. JOE GOLD CORPORATION

By                                              By
  Richard        N., Lundgren                     John W. Horton
  President                                       Assistant Vice President
<PAGE>

 STATE OF FLORIDA                              )
                                               ) ss.
 County of  Broward                            )

      The  foregoing  instrument  was  acknowledged  before  me  this 5th day of
February, 1987, by Richard N. Lundgren, the President of H. B. Layne Contractor,
Inc., an Indiana corporation, for an on behalf of the corporation.

 My commission expires:                                            Notary Public
         NOTARY PUBLIC   STATE OF FLORIDA
         MY COMMISSION EYP  JUNE 24, 1989
        'BONDED THRU GENERAL INS. UND.

 STATE OF ARIZONA                              )
                                               ) ss.
 County of  Pima                               )

      The  foregoing  instrument  was  acknowledged  before  me  this 3rd day of
February,  1987, by John W. Horton, the Assistant Vice President of St. Joe Gold
Corporation, a Delaware corporation, for an on behalf of the corporation.

 My commission expires:                                            Notary Public
   My Commission expires August 15, 1990
<PAGE>

                                   EXHIBIT A

      The  "Property"  consists  of  those  certain unpatened lode mining claims
situated in the Bullfrog Mining District, Nye County, Nevada, the names of which
and  the place of record of the location notices thereof in the official records
of  the  county  recorder  and  the  authorized  office  of  the  Bureau of Land
Management are as follows:

                                                Nye Cty Rcds        BLM Serial #
Name of Claim                                   Book      Page        N  MC

Mining  claims  subject  to  the Mining Lease and Option to Pur- chase Agreement
dated  August  3,  1987,  by and between Robert A. Revert and Claron Burnett, as
lessors, and Kelly Minerals, Inc., as lessee:

 Ace No. 1                                      110       426        11229
 Ace No. 2                                      110       427        11230
 Ace No. 3                                      110       428        11231

unencumbered  mining  claims  vested 100X in the Lessor under the forgoing Lease
Agreement between H. B. Layne Contractor, Inc., and St. Joe Gold:

Golden Eagle      #   2                         424       120       298788
Golden Eagle      #   3                         424       121       298789

Golden Age #   1                                424       103       298790
Golden Age #   2                                424       104       298791
Golden Age #   3                                424       105       298792
Golden Age #   4                                424       106       298793
Golden Age #   5                                424       107       298794
Golden Age #   6                                424       108       298795
Golden Age #   7                                424       109       298796
Golden Age #   8                                424       110       298797
Golden Age #   9                                424       111       298798
Golden Age #   12                               424       112       298799
Golden Age #   13                               424       113       298800
Golden Age #   14                               424       114       298801
Golden Age #   15                               424       115       298802
Golden Age #   16                               424       116       298803
Golden Age #   17                               424       117       298804

3,5-129

                                      A-1
<PAGE>

      VIA CERTIFIED MAIL
      RETURN RECEIPT REQUESTED                            BOND  GOLD CORPORATION

                                                                 October 5, 1989

      H. B. Layne Contractor, Inc.
      Attn: S. Lee Crouch, Esq.
      1001 North Federal Highway, Suite 206
      Hallandale, Florida 33009

                Re: Lease Agreement Dated February 5, 1987

      Dear Lee:

            As  always, it was a pleasure seeing you and Dick again. I hope that
      you  were reassured that our commingling procedures are in accordance with
      standard  industry  practice, and that any questions you may have had were
      answered to your satisfaction.

            As  we  discussed  this  day,  Bond  Gold Bullfrog Inc. has recently
      "mined  and marketed Leased Substances" from the Property, thus triggering
      Bond's  obligation  to  pay  the  advance  minimum royalty provided for in
      Section  3.b.  of  the Lease Agreement dated February 5, 1987. The subject
      Section  provides  that the advance minimum royalty is payable in the same
      manner as the rental payments. From a cold reading of this provision I was
      not  entirely  clear  on the intent of the parties. As you and I discussed
      and  agreed,  the  language is ambiguous, but you have advised me this day
      that,  in  your  opinion,  the  proper  interpretation is that the advance
      minimum royalty payment is due on February 5, 1990 or at such earlier time
      that  Bond  Gold mines and markets Leased Substances from the Property and
      is to be paid in advance every twelve months thereafter.

            I  have  spoken  with  Bond  Gold's  accounting  department  who has
      informed  me  that  the  first revenues from production of gold and silver
      from the Bullfrog Mine were booked on August 31, 1989. Accordingly, I have
      enclosed  a  check  in the amount of $50,000.00 as advance minimum royalty
      under  Section  3.b.  of  the  Lease  Agreement,  and will make subsequent
      advance  minimum  royalty payments on or before each August 31st hereafter
      during the period that the Lease Agreement remains in effect.

<PAGE>

      S. Lee Crouch, Esq.
      October 5, 1989
      Page 2

            We understand that, as provided in Section 2 of the Lease Agreement,
      payment  of  the  enclosed advance minimum royalty payment will extend the
      term  of  the  Lease  Agreement  up  to  and  including  August  31, 1990.
      Furthermore, the payment each year of advance minimum royalty on or before
      the  above anniversary date will extend the term of the Lease Agreement to
      and including August 31st of the following year.

            Please  indicate  below  your  agreement regarding the effect of the
      advance  minimum  royalty  and rental payments and return one copy of this
      letter to me. Thank you for assisting in this matter.

                                                        Very truly yours,

                                                        Garry L. Miller
                                                        Manager, Land Department

                        Agreed to this 19th day of OCTOBER, 1989.

                                                    H. B. LAYNE CONTRACTOR, INC.

                 Enclosure

                 cc:    Richard N. Lundgren
                        6205 S. W. 108th Street
                        Miami, Florida 33156

<PAGE>Exhibit K

                          PURCHASE AND SALE AGREEMENT

                                    BETWEEN

                          H. B. LAYNE CONTRACTOR, INC.

                                      AND

                             BARRICK BULLFROG INC.

                                July 20th, 2001

416342.1
7/16/01
<PAGE>

                          PURCHASE AND SALE AGREEMENT

       This  Purchase  and  Sale Agreement is entered into to be effective as of
July  2001,  by and between H. B. Layne Contractor, Inc., an Indiana corporation
("Seller"), and Barrick Bullfrog Inc., a Delaware corporation ("Buyer").

                                    RECITALS

       A.  Seller  owns  or controls certain unpatented mining claims located in
Nye  County,  Nevada  (the  "Properties").  The Properties are more particularly
described  in  Exhibit  A.  The Properties are presently leased and subleased by
Seller  to Buyer pursuant to that certain Lease Agreement dated February 5, 1987
between  Seller and St. Joe Gold Corporation, predecessor to Buyer (the "Lease")
which is also more particularly described in Exhibit A.

       B.  Buyer  operates  the  Bullfrog  Mine in Nye County, Nevada and is the
lessee  under  the  Lease. Buyer has paid to Seller royalties and other payments
pursuant  to  the  Lease.  Buyer  and  Seller  have a present disagreement about
whether  the  royalties payable by Buyer (as lessee) to Seller (as lessor) under
the Lease have been properly paid.

       C.  Seller  desires  to  sell to Buyer and Buyer desires to purchase from
Seller  all  of  Seller's  interest  in the Properties and the Lease and certain
related  assets.  Seller and Buyer also desire to resolve any disagreements they
may  have  with  respect  to  royalty  or other payments due to Seller under the
Lease.

                                   AGREEMENT

       For good and valuable consideration, the receipt and sufficiency of which
are acknowledged by the Parties, Seller and Buyer agree as follows:

1.0       DEFINITIONS

      1.1  "Adverse Consequences" means all losses, liabilities, actions, suits,
proceedings,  hearings,  investigations,  charges,  complaints, claims, demands,
injunctions,  judgments,  orders,  decrees,  rulings,  damages, dues, penalties,
fines,  costs, reasonable amounts paid in settlement, obligations, taxes, liens,
expenses,  and  fees,  including  court costs and reasonable attorneys' fees and
expenses.

      1.2  "Agreement"  means this Purchase and Sale Agreement together with all
its Exhibits.

      1.3  "Assumed  Liabilities"  means  any  claim,  action or cause of action
arising  out  of mining and processing operations conducted on the Properties by
Buyer,  its  predecessors, or its affiliates whether before or after the Closing
Date  including  any liability (including without limitation potential liability
for investigatory costs, cleanup costs, governmental response costs,

416342.1
7/16/01                                                      1
<PAGE>

natural  resources  damages, or penalties) arising out of, based on or resulting
from any violation, or alleged violation, of state or federal environmental laws
or regulations. Assumed Liabilities shall not include any Excluded Liabilities.

      1.4  "Assets"  means  the Properties, the Lease and all of Seller's right,
title   and  interest  in  and  to  the  Revert  Agreements  and  any  fixtures,
improvements  and other tangible or intangible real or personal property related
to  the  Properties,  the  Lease  and  the  Revert Agreements, including without
limitation  all  of  Seller's  right,  title and interest in and to all permits,
rights  of  way,  easements,  water  rights,  surface  use  agreements and other
contracts  related  to  the Properties, all choses, rights, actions or causes of
action  in  any  way  affecting  or relating to the Properties, the Lease or the
Revert  Agreements,  and  all  of  the  improvements,  buildings, structures and
fixtures  located  thereon,  or  used for the benefit of the Properties together
with  any  water  rights, including any certificates, applications and interests
relating  to  such  water rights, and any wells, ditches or flumes located on or
appurtenant to the Properties.

      1.5 "Buyer" has the meaning given in the preface.

      1.6  "Closing"  means  the closing to be conducted as described in Section
2.2 of this Agreement.

      1.7  "Closing Date" means the date on which the Closing occurs as provided
in Section 2.2 of this Agreement.

      1.8  "Conveyance"  means a Deed, Assignment and Bill of Sale substantially
in the form attached to this Agreement as Exhibit B to be executed and delivered
by Seller at the Closing.

      1.9 "Disputed Claims" means any and all claims, actions, causes of action,
demands  and disputes between the Parties whether or not presently asserted with
respect  to the Properties, the Lease or the other Assets and (a) the allegation
of  Seller  that  Buyer and its predecessors have not fully and properly paid to
Seller  all  royalties or other payments due under the Lease including any claim
for  additional  royalties  with respect to lands in Section 10, T. 12 S., R. 15
E., MDM and (b) the allegation of Buyer that it has overpaid Seller royalties on
lands  in  Section  10,  T.  12 S., R. 15 E., MDM. The Disputed Claims shall not
include  any  claims, actions, causes of action, demands and disputes that might
arise  in  the  future  as  a  result  of  a  breach,  or alleged breach, of any
representation  or  warranty made by a Party in this Agreement, the failure of a
Party  to perform an obligation arising under this Agreement or any other matter
not included in the Disputed Claims.

      1.10  "Excluded  Liabilities"  means  any  and  all  liabilities of Seller
arising  out  of  contractual  relationships  of  Seller  with  respect  to  the
Properties  or  the Lease or the Revert Agreements (including any attorneys' fee
agreements,  consulting  agreements,  employment  agreements  or  contingent fee
agreements)  or  with  respect  to claims against or litigation involving Seller
with  respect  to  the  Properties  or  the  Lease, including any claim by third
parties  for  royalties  paid  to  Seller  under  the  Lease,  any  claim by any
governmental  agencies  with  respect  to  state,  federal or local taxes or net
profits  or  proceeds  taxes  owed with respect to any rental, royalty, bonus or
other payment made by Buyer or its predecessors to Seller or its predecessors,

416342.1
7/16/01                                                      2
<PAGE>

and  any  claim for sales or use taxes, federal excise taxes, transfer, transfer
gain, documentation, gross receipts, value added and other taxes and charges, as
well  as  all associated interest and penalties payable with respect to the sale
or transfer of the Assets from Seller to Buyer pursuant to this Agreement.

      1.11 "Lease" has the meaning given in Recital A.

      1.12  "Lien" means, with respect to any of the Assets, any mortgage, title
defect,   lien,   lease,   pledge,  charge,  security  interest,  hypothecation,
restriction,  judgment,  lien  for taxes or governmental assessments, charges or
claims  (including  income  taxes of the Seller or federal, state or local taxes
associated  with  royalties paid to Seller from the Properties, the Lease or the
Revert Agreements).

      1.13 "Party" means Buyer or Seller and "Parties" means Buyer and Seller.

      1.14 "Properties" has the meaning given in Recital A.

      1.15  "Purchase  Price" means the sum of US$350,000 to be paid by Buyer to
Seller at the Closing.

      1.16  "Revert  Agreements"  means  that certain Mining Lease and Option to
Purchase  Agreement  dated  August  3,  1978 between Robert A. Revert and Claron
Burnett and Kelly Minerals, Inc. and that certain Assignment of Mining Lease and
Option  to  Purchase  Agreement  dated November 29, 1978 between Kelly Minerals,
Inc. and H. B. Layne Contractor, Inc.

      1.17 "Seller" has the meaning given in the preface.

2.0      BASIC TRANSACTION.

      2.1  Purchase  and  Sale  of  Assets.  On  and  subject  to  the terms and
conditions  of  this  Agreement,  at  the  Closing, Buyer agrees to purchase the
Assets  from Seller, and Seller agrees to sell, transfer, convey and deliver the
Assets to Buyer, for the Purchase Price.

      2.2  The Closing. The Closing shall take place by exchange of documents by
mail  or commercial courier, commencing on July 20 2001. The Closing shall occur
in the following order:

            (a)  Seller  will  deliver  to the Buyer (i) a certificate of a duly
      authorized  officer of Seller confirming that, as at the Closing Date, all
      of  the  representations  and  warranties  of  Seller  contained  in  this
      Agreement  are  true,  complete  and correct, as if made on such date, and
      that Seller has performed or complied with all of the terms, covenants and
      conditions of this Agreement to be performed or complied with by Seller at
      or  prior to the Closing, and (ii) an opinion of Seller's legal counsel in
      form  reasonably  satisfactory  to  Buyer's  legal  counsel that as of the
      Closing  Date  the  representations  and warranties in Subsections 4.1(a),
      (b), (c), and (d) are true and correct.

            (b)  Buyer  will  deliver  to  Seller  (i)  a  certificate of a duly
      authorized  officer  of Buyer confirming that, as at the Closing Date, all
      of the representations and warranties of Seller

416342.1
7/16/01                                                      3
<PAGE>

      contained  herein are true, complete and correct, as if made on such date,
      and  that Buyer has performed or complied with all of the terms, covenants
      and conditions of this Agreement to be performed or complied with by Buyer
      at  or  prior to the Closing, and (ii) an opinion of Buyer's legal counsel
      in  form  reasonably satisfactory to Seller's legal counsel that as of the
      Closing  Date  the  representations  and warranties in Subsections 4.2(a),
      (b), and (c) are true and correct.

            (c)  Seller  will  execute,  acknowledge  and  deliver  to Buyer the
      Conveyance  and  such other instruments of sale, transfer, conveyance, and
      assignment as the Buyer may request; and

            (d) Buyer will deliver to Seller the Purchase Price.

      2.3  Allocation.  The Parties agree to allocate the Purchase Price equally
among all of the Properties for all purposes (including financial accounting and
tax purposes).

      2.4  Assumption  of  Liabilities.  In  addition to payment of the Purchase
Price,  from  and  after  the  Closing,  Buyer  shall  assume  and agree to pay,
discharge  and  perform  when due the Assumed Liabilities. Buyer will not assume
nor have any responsibility with respect to any other obligation or liability of
Seller not expressly included in the Assumed Liabilities.

3.0 SETTLEMENT OF THE DISPUTED CLAIMS

      3.1  Mutual  Release. As part of the consideration exchanged by Seller and
Buyer  pursuant to this Agreement, if the Closing occurs and without any further
action  or  documentation  on  the  part  of Seller and Buyer or either of them,
Seller  and  Buyer  agree  that  they will have irrevocably settled the Disputed
Claims.  The  Closing shall evidence the full and complete release and discharge
of  the  Disputed  Claims by each Party and its and their subsidiaries, parents,
officers,   employees,   directors,  servants,  agents,  attorneys,  affiliates,
representatives,  successors  and  assigns  of the other Party and its and their
subsidiaries,   parents,   officers,  employees,  directors,  servants,  agents,
attorneys, affiliates, representatives, successors and assigns.

      3.2  Disclaimer With Respect to the Settlement. The Parties understand and
agree  that this settlement represents a compromise of the Disputed Claims, that
the  Disputed  Claims are disputed by the Parties against whom they are or might
be  made and that settlement of the Disputed Claims is not to be construed as an
admission  of  liability  on  the  part  of either Party (each of whom expressly
denies  any  such liability) with respect to any obligations with respect to the
Properties  or  the Lease or the Revert Agreements. Each Party acknowledges that
it  is  relying  on  its own judgment, belief and knowledge as to the extent and
nature  of  the  Disputed Claims and that it is not relying on any statements or
representations  of  any kind of the other Party. The Parties further understand
and  agree  that  the facts now known by them or believed by them to be true and
upon  which they have relied in negotiating this settlement might later prove to
be  untrue  or  that  additional  facts might become known to them and expressly
accept  and  assume  the  risk associated with such possibilities and agree that
this  settlement  is  binding and is not subject to termination or rescission in
such event.

      3.3  Future  Grant  of Royalty. Buyer agrees that if, in the future, Buyer
commences mining from the Properties, insofar and only insofar as the Properties
are within Section 15, T.

416342.1
7/16/01                                                      4
<PAGE>

12  S.,  R.  15 E., MDM or the S1/2SE1/4SW1/4 of Section 10, T. 12 S., R. 15 E.,
MDM,  Buyer will grant to Seller a production royalty on terms equivalent to the
Net  Returns  royalty set out in Section 5.c of the Lease. Such royalty shall be
granted  when  and  if  production is obtained and Buyer will have absolutely no
obligation,  express or implied, (a) to explore for, develop, mine or market any
minerals from within the Properties or (b) to pay any rentals, advance royalties
or other payments of any kind absent actual production from such Properties.

      3.4  Maintenance  of  the  Properties;  New  Tenure.  Buyer  shall have no
obligation, express or implied, to maintain any of the mining claims included in
the  Properties.  Buyer  may  abandon  such  claims, relocate such claims as new
mining  claims or as mill sites, or exchange or otherwise convert such claims to
a  different  form of tenure as Buyer sees fit. If Buyer maintains less than all
of  the  mining  claims,  relocates  the  claims  or secures a different form of
tenure,  the  right to receive future royalties as provided in Section 3.3 shall
attach  to  such  mining claims or different form of tenure as Buyer then has on
lands  in  Section  15, T. 12 S., R. 15 E., MDM or the S1/2SE1/4SW1/4 of Section
10,  T.  12  S.,  R. 15 E., MDM, that are included within the Properties. For so
long  as  Buyer  maintains  any  mining  claims or other form of tenure on lands
included  within  the  Properties,  Seller shall not locate or participate in or
otherwise  assist  any third party in locating mining claims or mill sites on or
attempting to secure any interest in such lands.

4.0      REPRESENTATIONS AND WARRANTIES.

      4.1  Representations  and  Warranties  of  Seller.  Seller  represents and
warrants  to Buyer that the statements contained in this Section 4.1 are correct
and  complete  as of the date of this Agreement and will be correct and complete
as  of the Closing Date (as though made then and as though the Closing Date were
substituted for the date of this Agreement).

            (a)  Organization  of  the  Seller.  Seller  is  a  corporation duly
      organized,validly  existing,  and  in  good standing under the laws of the
      jurisdiction  of  its incorporation and is in good standing under the laws
      of the State of Nevada.

            (b)   Authorization  of  Transaction.  Seller  has  full  power  and
      authority  to  execute  and  deliver  this  Agreement  and  to perform its
      obligations  hereunder.  Without limiting the generality of the foregoing,
      this Agreement is consistent with the powers of Seller as set forth in its
      charter  and  bylaws and the board of directors of Seller has reviewed and
      has  duly  authorized  the  execution,  delivery,  and performance of this
      Agreement  by  Seller.  This  Agreement  constitutes the valid and legally
      binding obligation of Seller, enforceable in accordance with its terms and
      conditions.

            (c) Shareholders' Approval. The shareholders of Seller have reviewed
      this  Agreement,  discussed  the  subject matter of this Agreement and the
      transactions  contemplated by this Agreement with counsel of their choice,
      and  have duly authorized the execution, delivery, and performance of this
      Agreement by the Seller.

            (d) Noncontravention. Neither the execution and the delivery of this
      Agreement  nor  the  consummation  of the transactions contemplated hereby
      will  (i)  violate  any  statute,  regulation,  rule,  or  decree  of  any
      government, governmental agency, or court to which

416342.1
7/16/01                                                      5
<PAGE>

      Seller is subject or (ii) conflict with, result in a breach of, constitute
      a  default under any agreement to which Seller is a party. Seller does not
      need  to  give  any  notice  to,  make  any  filing  with,  or  obtain any
      authorization,  consent,  or  approval  of  any third party, including any
      government  or governmental agency, in order for the Parties to consummate
      the transactions contemplated by this Agreement.

            (e)  Brokers' Fees. Seller has no liability or obligation to pay any
      fees  or  commissions  to any broker, finder, consultant, advisor or agent
      with  respect to the transactions contemplated by this Agreement for which
      the Buyer could become liable or obligated.

            (f)  Title  to  the  Assets.  With  respect  to  the  Assets, Seller
      represents and warrants that:

                  (i)  Seller  has good and marketable title to the Assets, free
            and  clear  of  any  Lien,  or  any right or claim of third parties,
            except  for  the rights of Buyer under the Lease and this Agreement.
            No  outstanding  third party rights exist with respect to the Revert
            Agreements  and  Seller  is the sole owner of the Properties and the
            Lease  and  is  the  sole  entity entitled to receive any royalty or
            other  payments  payable  with respect to minerals produced from the
            Properties.   Seller   has   not  assigned,  transferred,  conveyed,
            mortgaged,  deeded  in  trust,  or  encumbered  any  interest in the
            Properties,  the  Lease  or  the  Revert  Agreements.  Seller has no
            obligation  to pay to any third party any portion of the payments it
            has   received  under  this  Agreement,  the  Lease  or  the  Revert
            Agreements.

                  (ii)  Except  for  the  civil  litigation  styled  "Bond  Gold
            Bullfrog,  Inc.  vs.  Parador  Mining  Co.,  Inc., et al., presently
            pending in the Nevada Supreme Court, there are no pending or, to the
            knowledge  of Seller, threatened condemnation proceedings, lawsuits,
            or  administrative  actions  involving  Seller  and  relating to the
            Assets.

                  (iii)  No  contracts,  agreements,  options,  rights  of first
            refusal, preemptive rights, other, similar rights or other interests
            exist with respect to the Assets to which Seller or its predecessors
            are  bound  and for which the Buyer could become liable or obligated
            after Closing.

                  (iv)  All  consideration  due  under the Revert Agreements has
            been  fully and timely paid and no obligations exist with respect to
            the  Revert  Agreements  for  which the Buyer could become liable or
            obligated after Closing.

            (g) Disclosure. The representations and warranties contained in this
      Section  do not contain any untrue statement of a material fact or omit to
      state  any  material  fact  necessary  in order to make the statements and
      information contained in this Section not misleading.

      4.2 Representations and Warranties of Buyer. Buyer represents and warrants
to  the Seller that the statements contained in this Section 4.2 are correct and
complete as of the date of this Agreement and will be correct and complete as of
the  Closing  Date  (as  though  made  then  and as though the Closing Date were
substituted for the date of this Agreement).

416342.1
7/16/01                                                      6
<PAGE>

            (a)  Organization  of  Buyer. Buyer is a corporation duly organized,
      validly  existing, and in good standing under the laws of the jurisdiction
      of  its  incorporation and is in good standing under the laws of the State
      of Nevada.

            (b) Authorization of Transaction. Buyer has full power and authority
      to  execute  and  deliver  this  Agreement  and to perform its obligations
      hereunder. Without limiting generality of the foregoing, this Agreement is
      consistent  with  the  powers of Buyer as set the forth in its charter and
      bylaws  and  the execution, delivery, and performance of this Agreement by
      the  Buyer  has been duly authorized. This Agreement constitutes the valid
      and  legally  binding  obligation of Buyer, enforceable in accordance with
      its terms and conditions.

            (c) Noncontravention. Neither the execution and the delivery of this
      Agreement  nor  the  consummation  of the transactions contemplated hereby
      will  (i)  violate  any  statute,  regulation,  rule,  or  decree  of  any
      government,  governmental  agency,  or  court to which Buyer is subject or
      (ii)  conflict with, result in a breach of, constitute a default under any
      agreement  to  which  Buyer  is  a  party. Buyer does not need to give any
      notice  to, make any filing with, or obtain any authorization, consent, or
      approval  of  any  third  party,  including any government or governmental
      agency,   in   order  for  the  Parties  to  consummate  the  transactions
      contemplated by this Agreement.

            (d)  Brokers'  Fees. Buyer has no liability or obligation to pay any
      fees  or  commissions  to any broker, finder, consultant, advisor or agent
      with  respect to the transactions contemplated by this Agreement for which
      the Seller could become liable or obligated.

5.0 INTERIM PERIOD; OBLIGATION TO CLOSE

      5.1  No  Change or Commitments. Between the Date of this Agreement and the
Closing Date, neither Party shall enter into any arrangement or contract or make
any new commitment with respect to the Assets.

      5.2 Work Diligently Towards Closing. Buyer and Seller shall each use their
efforts  to  work  diligently towards completing the transaction contemplated by
reasonable best this Agreement on the Closing Date.

      5.3  Notification  of  Breach.  Each  Party  shall use its reasonable best
efforts  to  notify other Party if it believes that any breach has occurred with
respect  to  any  of  the  representations,  warranties, covenants or agreements
contained  in  this Agreement or of any if becomes aware of any event reasonably
likely  to  cause  any  of  such  circumstance  or  representations, warranties,
covenants or agreements to be breached.

      5.4  Conditions to Obligation of Seller to Close. The obligation of Seller
to  consummate the transactions contemplated by this Agreement is subject to the
satisfaction of the following conditions:

            (a)  All of the representations and warranties of Buyer contained in
      Section 4.2 true, complete and correct on and as of the Closing Date as if
      made  on  the  Closing  Date  shall  be and Seller shall have received the
      materials described in Subsection 2.2(b); and

416342.1
7/16/01                                                      7
<PAGE>

            (b)  No  injunction,  restraining  or  similar order shall have been
      issued  by  a court or governmental authority prohibiting the transactions
      contemplated by this Agreement.

      5.5 Conditions to Obligation of Buyer to Close. The Buyer to obligation of
consummate  the  transactions  contemplated  by this Agreement is subject to the
satisfaction of the following conditions:

            (a) All of the representations and warranties of Seller contained in
      Section  4.1  shall be true, complete and correct on and as of the Closing
      Date  as  if  made  on  the Closing Date and Buyer shall have received the
      described in Subsection 2.2(a);

            (b)  No  material  change shall have occurred with respect to any of
      the Assets between the date of this Agreement and the Closing Date; and

            (c)  No  injunction,  restraining  or  similar order shall have been
      issued  by  a court or governmental authority prohibiting the transactions
      contemplated by this Agreement.

6.0       TERMINATION

      6.1  Termination.  This  Agreement  may  be  terminated prior to or at the
Closing:

            (a) By mutual written consent of Buyer and Seller; or

            (b) By either Party if the Closing has not occurred (other than as a
      result  of  the  failure  by  a Party to comply fully with its obligations
      under  this Agreement) on or before July 31, 2001; or By either Party if a
      material  breach  by  the other Party of its obligations (c) hereunder has
      occurred  and  such breach has not been cured to the non-breaching Party's
      satisfaction  following receipt of notice of breach from the non-breaching
      Party.

      6.2 Other Remedies. If this Agreement is terminated pursuant to Subsection
6.1(a) or pursuant to Subsection 6.1(b) other than as a result of the failure by
a  Party  to comply fully with its obligations under this Agreement, all further
obligations  of  the  Parties  shall  terminate  except  that the obligations in
Subsection  8.2(b)  shall  survive.  If this Agreement is terminated pursuant to
Subsection 6.1(b) as a result of the failure by a Party to comply fully with its
obligations  under this Agreement or pursuant to Subsection 6.1(c), the exercise
of  a  right of termination will not be an election of remedies and, in addition
to  any  other  rights  it  may  have  under  this  Agreement  or otherwise, the
terminating  Party's  right  to  pursue  all  legal  remedies  will survive such
termination unimpaired.

7.0      SURVIVAL; REMEDIES; INDEMNIFICATION

      7.1   Survival.   All   obligations  (i)  of  Seller  for  breach  of  the
representations  and  warranties  set  forth in Section 4.1 and to indemnify and
hold  harmless  Buyer  under  Section  7.3,  (ii)  of  Buyer  for  breach of the
representations  and  warranties  set  forth in Section 4.2 and to indemnify and
hold  harmless Seller under Section 7.2, and (iii) of Seller and Buyer set forth
in  Sections  3.1  through  3.4  shall survive the Closing. In the event a Party
breaches any of its

416342.1
7/16/01                                                      8
<PAGE>

covenants,  representations  and warranties in this Agreement, provided that the
other  Party  makes  written  claim for indemnification against the indemnifying
Party  pursuant  to  Section 7.4 below, a indemnifying Party agrees to indemnify
the other Party from and against the entirety of then the Consequences the other
Party shall suffer through and after the date of the claim. any Adverse

      7.2  Buyer's  Indemnities.  Subject  to the limitations and procedures set
forth  in  Section  7.4,  after  the Closing Date Buyer shall indemnify and hold
Seller  and  its  officers,  directors,  agents,  attorneys, and representatives
harmless  against  and  in  respect of all employees, incurred by Seller and its
officers,  employees,  directors,  agents,  Adverse  Consequences attorneys, and
representatives to the extent that such Adverse Consequences arise out of

      (a)  The Assumed Liabilities or Buyer's use or operation of the Properties
on and after the Closing Date; and

      (b)  Any  breach  of any of the representations and warranties of Buyer in
this  Agreement, or in any document delivered in connection with this Agreement,
or contained by Buyer to fulfill any agreement or covenants on the part of Buyer
under this the failure Agreement or in any document delivered in connection with
this Agreement.

      7.3  Seller's  Indemnities.  Subject  to the limitations and procedures of
Section  7.4,  Date  Seller  shall  indemnify, defend and hold the Buyer and its
officers,  after  the  Closing  agents,  attorneys, and representatives harmless
against  and  in  respect of all employees, directors, incurred by Buyer and its
officers,  employees,  directors,  agents,  Adverse  Consequences attorneys, and
representatives to the extent that such Adverse Consequences arise out of

      (a)   The Excluded Liabilities; and

      (b)  Any  breach  of  any  of the representations and warranties of Seller
Agreement  or  any  document  delivered  in  connection  with this Agreement, or
contained  in  this  to fulfill any agreement or covenants on the part of Seller
under  this  the  failure  by  Seller  Agreement  or  any  document delivered in
connection with this Agreement.

      7.4  Notice  and  Procedure.  If  a  Party believes that it is entitled to
indemnification  shall  initiate a claim for indemnification by giving notice in
under this Agreement, the Party indemnifying Party as soon as possible after the
Party  discovers  the  basis  for  a  writing to the shall specify the basis for
seeking  indemnification  under this Agreement, the claim. Such notice nature of
the  event  giving  rise to the claim, the identity of any amount (to the extent
known),  the  involved,  any pleadings or other documents or demands served upon
the  Party third parties relevant information. The failure to give prompt notice
of  a  matter  giving notice and any other give rise to an indemnification claim
shall  not  affect  the rights of the indemnified which may such claims from the
indemnifying  Party  so  long as such failure to so notify does Party to collect
adversely affect the indemnifying Party's ability to defend such claim against a
not materially third party.

            (a)  Notice  and  Response.  The  Party from whom indemnification is
      sought  days  of  receipt of a notice seeking indemnity as provided in the
      preceding  shall,  within 15 response to the notifying Party in writing as
      to  whether  it  accepts  or denies paragraph, provide a If the Party from
      whom  indemnification  is  sought  accepts  the  request  the  request for
      indemnity.

416342.1
7/16/01                                                      9
<PAGE>

      for  indemnification,  the  Parties shall settle the claim accordingly. If
      the  Party  from  whom  indemnification  is  sought denies the request for
      indemnification  or  fails  to respond, the notifying Party may pursue all
      legal remedies available to it.

            (b)   Matters   Involving   Third   Parties.   If   the   claim  for
      indemnification  involves  a  third  party,  in  addition  to  providing a
      response  to the notifying Party as provided above, the indemnifying Party
      will  have  the  right  at  any  time to assume and thereafter conduct the
      defense  of  the  claim made by the third party with counsel of its choice
      reasonably  satisfactory  to  the other Party; provided, however, that the
      indemnifying  Party will not consent to the entry of any judgment or enter
      into  any  settlement  with  respect  to the third party claim without the
      prior  written  consent  of  the  indemnified  Party  (not  to be withheld
      unreasonably) unless the judgment or proposed settlement involves only the
      payment  of  money  damages  and  does  not  impose an injunction or other
      equitable  relief  upon  the  indemnified  Party.  Unless  and  until  the
      indemnifying  Party assumes the defense of a a third party claim, however,
      the Party seeking indemnification may defend against the third party claim
      in any manner it reasonably may deem appropriate.

8.0       GENERAL

       8.1  Notices.  Any  notices  or  other communications between the Parties
required  by  this  Agreement  shall  be  in  writing  and delivered by personal
delivery,  by facsimile transmission or by commercial courier. Delivery shall be
effective  on  verifiable  receipt.  All such notices or communications shall be
addressed  as  follows, provided that either Party may change its address at any
time by notice given in the manner described above:

         To Seller:                            With a copy to:

          H. B. Layne  Contractor, Inc.        H. B. Layne Contractor, Inc.
          5620 South Landings Drive, #704      6510 Melaleuca  Road
          Ft. Myers, Florida 33919             Southwest Ranches
          Attn: S. Lee Crouch                  Fort Lauderdale, Florida 33330
          Tel: (941) 433-1382                  Attn: Patrick R. Layne, President
          Fax: (941) 433-5966                  Tel: (954) 434-8943
                                               Fax: (954) 434-3130

          To Buyer:                            With a copy to:

          Barrick Bullfrog Inc.                Barrick Bullfrog Inc.
          Barrick Management Corporationc/o    293 Spruce Road
          136 East South Temple, Suite 1050    Elko, Nevada 89801-4491
          Lake City, Utah 84111Salt            Attn:   W. G. (Bill) Houston
          Attn:   Rich Haddock                 Tel: (775) 738-2062
          Tel: (801) 539-0660                  Fax: (775) 738-2804
          Fax: (801) 539-0665

416342.1
7/16/01                                                     10
<PAGE>

         8.2        Miscellaneous.

            (a)  Amendment  of  Agreement. This Agreement may only be amended or
      modified by a document in writing executed by the Parties. Nothing in this
      Agreement  shall  impose any obligations or covenants, express or implied,
      to  conduct  any particular level or degree of exploration, development or
      mining  operations  upon  the  Properties,  except  as otherwise except as
      expressly required by this Agreement.

            (b)  Confidentiality.  This  Agreement  and  all  of  its  terms and
      conditions and all information provided by Buyer to Seller with respect to
      the  Properties,  the Leases and the Revert Agreements shall be treated by
      the  Parties as confidential and shall not be divulged by a Party directly
      or indirectly to any person without the prior written authorization of the
      other  Party.  It  is  understood  that  the  foregoing  obligations shall
      continue  indefinitely  notwithstanding the termination of this Agreement.
      Such  obligations do not apply to information that is in the public domain
      through  no  fault  of  the  disclosing  Party  or  which is independently
      obtained from a third party with no breach of confidentiality, or which is
      required  to be disclosed pursuant to applicable law, regulation, judicial
      or administrative order or stock exchange rules.

            (c)  Governing  Law; Severability. This Agreement shall be construed
      and  interpreted in accordance with, governed and enforced in all respects
      by  the laws of the State of Nevada. If any provision of this Agreement is
      held to be invalid or unenforceable, the remainder of this Agreement shall
      continue in full force and effect.

            (d)  Press  Releases. Neither Party shall issue any press release or
      make  any  public  announcement  relating  to  the  subject matter of this
      Agreement.

            (e) Further Assurances. Each of the Parties agrees that from time to
      time, at the request of the other Party and without further consideration,
      it  will  execute  and  deliver  such  other documents and take such other
      actions  as  counsel  for such other Party reasonably requests in order to
      consummate   more   effectively  the  transactions  contemplated  by  this
      Agreement.

            (f)  Assignment.  Neither Party shall have the right to transfer its
      rights under this Agreement, in whole or in part, prior to the Closing.

            (g)  No  Third-Party  Beneficiaries. Except as expressly provided in
      this  Agreement,  this  Agreement  shall not confer any rights or remedies
      upon any third party.

            (h)  Costs  and  Fees.  The  Parties  shall  pay  their own expenses
      including  attorney's fees, incident to the preparation and performance of
      this  Agreement,  whether  or not the transactions contemplated herein are
      consummated.

            Waiver. The failure of a Party to insist upon the strict performance
      of  any  of the terms, conditions or covenants of this Agreement shall not
      be  construed  as  a  waiver or relinquishment for the future of any term,
      condition or covenant.

            (j)  Construction.  The  Parties  have  participated  jointly in the
      negotiation  and  drafting of this Agreement. In the event an ambiguity or
      question  of  intent  or  interpretation  arises,  this Agreement shall be
      construed as if drafted jointly by the Parties and no presumption

416342i
7/16/01                                                     11
<PAGE>

      or burden of proof shall arise favoring or disfavoring any Party by virtue
      of the authorship of any of the provisions of this Agreement.

            (k)  Counterparts.  This  Agreement  may  be executed in one or more
      counterparts,  each  of which shall be deemed an original but all of which
      together  will  constitute  one and the same instrument. The Parties agree
      that  signatures  transmitted  by  facsimile transmission shall constitute
      original  signatures  and  that  an Agreement transmitted by facsimile and
      containing  the signatures (original or transmitted) of both Parties shall
      be binding.

            (1)  Integration.  All  understandings  and  agreements  between the
      Parties  regarding  the purchase and sale of the Assets and the settlement
      of  the  Claims are merged into this Agreement, which fully and completely
      expresses  the  agreement  of the Parties. This Agreement was entered into
      after  adequate investigation, neither Party relying upon any statement or
      representation not embodied in this Agreement made by the other Party. All
      Exhibits  referred  to  in  this Agreement are expressly incorporated into
      this Agreement.

       Executed to be effective as of the date first written above.

                                           "Seller"

                                               H. B. Layne Contractor, Inc.

                                           "Buyer"

                                               Barrick Bullfrog Inc.

416342.1
7/16/01                                                     12
<PAGE>

                                   EXHIBIT A

                                       to
                          Purchase and Sale Agreement

                                 THE PROPERTIES

      The  Properties  consist  of  those  certain unpatented lode mining claims
situated in the Bullfrog Mining District, Nye County, Nevada, the names of which
and  the  place of record of the location notices in the official records of the
Nye  County  Recorder and the authorized office of the Bureau of Land Management
are as follows:

      1.  Mining  claims  originally  subject  to the Mining Lease and Option to
Purchase  Agreement  dated  August  3, 1987, by and between Robert A. Revert and
Claron Burnett, as lessors, and Kelly Minerals, Inc., as lessee, as assigned and
conveyed  to  H.  B.  Layne  Contractor,  Inc. by Assignment of Mining Lease and
Option  to  Purchase  Agreement  dated November 29, 1978 between Kelly Minerals,
Inc.  and  H. B. Layne Contractor, Inc. and subject to the Lease Agreement dated
February  5,  1987  between  H.B.  Layne  Contractor,  Inc.,  and  St.  Joe Gold
Corporation:

            NAME OF CLAIM                 NYE COUNTY RECORDS       BLM SERIAL
                                           Book       Page            NMC #
            Ace No. 1                      110        426           112229
            Ace No. 2                      110        427           112230
            Ace No. 3                      110        428           112231

      2.  Mining  claims  located  in  the name of and 100% owned by H. B. Layne
Contractor,  Inc.  and  subject  to  the  Lease Agreement dated February 5, 1987
between H.B. Layne Contractor, Inc., and St. Joe Gold Corporation:

            NAME OF CLAIM                 NYE COUNTY RECORDS       BLM SERIAL
                                           Book       Page            NMC #
            Golden Eagle # 2               424        120           298788
            Golden Eagle # 3               424        121           298789
            Golden Age # 1                 424        103           298790
            Golden Age # 2                 424        104           298791
            Golden Age # 3                 424        105           298792
            Golden Age # 4                 424        106           298793
            Golden Age # 5                 424        107           298794

416342.1
7/16/01                                                     13
<PAGE>

            Golden Age # 6
              Original Location            424        108           298795
               Relocation                             252249        583381
            Golden Age # 7
              Original Location            424        109           298796
               Relocation                             252250        583382
            Golden Age # 8
              Original Location            424        110           298797
               Relocation                             252251        583383
            Golden Age # 9
              Original Location            424        111           298798
               Relocation                             252252        583384
            Golden Age # 12
              Original Location            424        112           298799
               Relocation                             252253        583385
            Golden Age # 13
              Original Location            424        113           298800
               Relocation                             252254        583386
            Golden Age # 14
              Original Location            424        114           298801
               Relocation                             252255        583387
            Golden Age # 15                424        115           298802
            Golden Age # 16                424        116           298803
            Golden Age # 17
              Original Location            424        117           298804
               Relocation                             252256        583388

416342.1
7/16/01                                                     14
<PAGE>

                                   EXHIBIT B

                                       to
                          Purchase and Sale Agreement

                                 THE CONVEYANCE

                                                           Assessor's Parcel No.
When Recorded, Return to:

W. G. (Bill) Houston
Barrick Bullfrog Inc.
293 Spruce Road
Elko, Nevada 89801-4491

                       DEED, ASSIGNMENT AND BILL OF SALE

      For  good and valuable consideration, the receipt and sufficiency of which
are  hereby  expressly  acknowledged,  H.  B.  Layne Contractor, Inc., a Florida
corporation ("Grantor)),

      grants,  sells,  transfers,  conveys,  assigns  and  delivers  to  Barrick
Bullfrog  Inc.,  a Delaware corporation ("Grantee), whose mailing address is 293
Spruce  Road, Elko, Nevada 89801-4491, the entire estate in and to the following
described  property  situated  in Nye County, Nevada (the 'Properties"), subject
only to the paramount title of the United States of America:

       See Exhibit A attached to this Deed, Assignment and Bill of Sale,

      together with all of Grantor's interest in and to the leases and the other
agreements  identified  in  Exhibit  A,  any  after acquired title in and to the
Properties or the lands covered thereby and any fixtures, improvements and other
tangible  or intangible real or personal property related to the Properties, the
leases  and  the other agreements, including without limitation all of Grantor's
right, title and interest in and to all permits, rights of way, easements, water
rights,  surface  use  agreements and other contracts related to the Properties,
all choses, rights, actions or causes of action in any way affecting or relating
to  the  Properties, the leases or other agreements identified in Exhibit A, and
all  of the improvements, buildings, structures and fixtures located thereon, or
used for the benefit of the Properties together with any water rights, including
any  certificates, applications and interests relating to such water rights, and
any wells, ditches or flumes located on or appurtenant to the Properties.

       Grantor  hereby binds itself and its successors to warrant and defend the
title  to  the  Properties against all claiming by through or under Grantor, but
not otherwise.

416342.1
7/16/01                                                     15
<PAGE>

       IN  WITNESS  WHEREOF, Grantor has duly executed this Deed, Assignment and
Bill of Sale as of the day and year first above written.

                                   "Grantor"

H. B. Layne Contractor, Inc.

                                                     By:
                                                     Its:

State of
                                              )
                                              ) ss.
County of
                                              )

       This  instrument  was  acknowledged  before  me, a notary public, on July
2001, by , the of H. B. LAYNE CONTRACTOR,

INC., a Florida corporation, on behalf of the corporation.

                                                         Notary Public

My commission expires:

416342.1
7/16/01                                                     16
<PAGE>

                                   EXHIBIT A

                                       to
                       Deed, Assignment and Bill of Sale

                                 THE PROPERTIES

      The  Properties  consist  of  those  certain unpatented lode mining claims
situated in the Bullfrog Mining District, Nye County, Nevada, the names of which
and  the  place of record of the location notices in the official records of the
Nye  County  Recorder and the authorized office of the Bureau of Land Management
are as follows:

      1.  Mining  claims  originally  subject  to the Mining Lease and Option to
Purchase  Agreement  dated  August  3, 1987, by and between Robert A. Revert and
Claron Burnett, as lessors, and Kelly Minerals, Inc., as lessee, as assigned and
conveyed  to  H.  B.  Layne  Contractor,  Inc. by Assignment of Mining Lease and
Option  to  Purchase  Agreement  dated November 29, 1978 between Kelly Minerals,
Inc.  and  H. B. Layne Contractor, Inc. and subject to the Lease Agreement dated
February  5,  1987  between  H.B.  Layne  Contractor,  Inc.,  and  St.  Joe Gold
Corporation:

            NAME OF CLAIM                 NYE COUNTY RECORDS       BLM SERIAL #
                                           Book       Page             NMC #
            Ace No. 1                      110        426           112229
            Ace No. 2                      110        427           112230
            Ace No. 3                      110        428           112231

      2.  Mining  claims  located  in  the name of and 100% owned by H. B. Layne
Contractor,  Inc.  and  subject  to  the  Lease Agreement dated February 5, 1987
between H.B. Layne Contractor, Inc., and St. Joe Gold Corporation:

            NAME OF CLAIM                 NYE COUNTY RECORDS       BLM SERIAL #
                                           Book       Page             NMC #
            Golden Eagle # 2               424        120           298788
            Golden Eagle # 3               424        121           298789
            Golden Age # 1                 424        103           298790
            Golden Age # 2                 424        104           298791
            Golden Age # 3                 424        105           298792
            Golden Age # 4                 424        106           298793
            Golden Age # 5                 424        107           298794
            Golden Age # 6
              Original Location            424        108           298795
               Relocation                             252249        583381

416342.1
7/16/01                                                     17
<PAGE>

            Golden Age # 7
              Original Location            424        109           298796
               Relocation                             252250        583382
            Golden Age # 8
              Original Location            424        110           298797
               Relocation                             252251        583383
            Golden Age # 9
              Original Location            424        111           298798
               Relocation                             252252        583384
            Golden Age # 12
              Original Location            424        112           298799
               Relocation                             252253        583385
            Golden Age # 13
              Original Location            424        113           298800
               Relocation                             252254        583386
            Golden Age # 14
              Original Location            424        114           298801
               Relocation                             252255        583387
            Golden Age # 15                424        115           298802
            Golden Age # 16                424        116           298803
            Golden Age # 17
              Original Location            424        117           298804
               Relocation                             252256        583388

416342.1
7/16/01                                                     18
<PAGE>

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