Agnico set to begin drilling Vezza Twp.

Having closed the agreement that allows Agnico-Eagle to earn a 51% intere st in the Vezza gold deposit and surrounding lands, in return for spending $7.4 m illion, the Toronto company is drawing up the initial exploration plan.

The agreement requires Agnico to spend $650,000 within the first two years of a 5-year deal, and $300,000 for each 6-month period after that.

Once Agnico has exercised the option, it must transfer to Dundee- Palliser and North American an initial 36.5% in a portion of its land holdings near the Allard River. The three companies will then embark on a joint venture with Agnico acting as initial project operator.

Drilling so far at Vezza Twp. has outlined probable and possible reserves of over two million tons grading 0.16 oz gold per ton. (A 0.10-oz cutoff is used.)

According to North American President Stan Hawkins, the initial program should include 5,000 ft of definition drilling on the Vezza deposit and another 5,000 ft on additional targets.

Also, Agnico-Eagle has purchased, via a private placement, 531,915 Dundee-Palliser common shares for 47 cents each, and 706,860 common shares of North American for 35 cents .

MVP Capital (TSE) holds a 66% stake in Dundee-Palliser which is earning 50% of VSM Exploration’s (ME) Grevet Twp. zinc project in northwestern Ontario.

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