NEVADA & THE WESTERN STATES — White Knight joins with Kennecott Exploration

Kennecott Exploration has entered into an option agreement with White Knight Resources (WKR-V) on the latter’s Lone Mountain gold property in Nevada.

The Rio Tinto (RTP-N) subsidiary can earn an initial 51% interest by spending US$2 million on exploration and paying a total of US$375,000 over five years. A further 19% can be earned in return for an additional expenditure of US$15 million or a committment to pay all costs prior to the stage at which production becomes feasible.

Situated in the Merrimac district of Elko Cty., the Lone Mountain property consists of 263 claims on federal land administered by the Bureau of Land Management, plus 160 acres of land held under lease from local landowners. White Knight, which has completed regional-scale mapping and collected 450 rock samples, reports that two prospective drill targets display the geological markings of Carlin-style gold mineralization.

This summer, Kennecott plans to spend US$200,000 in an exploration program than includes drilling.