North joins New Inca and Terrace at El Molino

Australian major North Ltd. has entered into a joint-venture agreement with Toronto-based New Inca Gold (NIGL-C) and Australian explorer Terrace Gold at the juniors’ equally owned El Molino copper-gold project in Peru.

North can earn a 51% interest in El Molino by spending US$3 million on exploration and paying the two partners a total of US$1.6 million cash over five years. The major can then earn a further 24% interest by completing a feasibility study.

Situated in Peru’s Yanacocha district, El Molino appears to be an extension of North’s adjacent El Galeno copper-gold porphyry deposit, where the company has delineated an inferred resource of 405 million tonnes grading 0.59% copper and 0.15 gram gold per tonne.

In May 1998, North admitted to drilling several holes in error on the Molino property. The best of these holes intersected 190 metres from surface grading 0.45% copper.

Terrace Gold is a wholly owned subsidiary of Australian-listed Kimberley Diamonds.