NovaGold options Corner Bays Touquoy property

Corner Bay Minerals (TSE) has optioned its Touquoy gold property in Nova Scotia to NovaGold Resources (TSE).

NovaGold will pay $5,000 cash and will have 12 months to complete a feasibility study of the property, situated at Moose River, where reserves exceed 1.9 million tonnes averaging more than 2 grams gold per tonne. NovaGold will conduct a bulk sample test not to exceed 5,000 tonnes. If the results are positive, the company can acquire the 38-claim property outright, with Corner Bay holding a 3% net smelter return royalty on all production. The royalty will be prepaid at $10,000 per year starting at the time the option is exercised; prepayments will be credited against the royalty. In other news, Soquem, the Quebec Crown exploration company, has started drilling on Corner Bays Main Zone copper deposit near Chibougamau. Under an option agreement, Soquem could earn a 30% interest in the 16-claim inner block by spending $1.2 million by Dec. 31. It can increase its interest to half by spending an additional $1.2 million by June 30, 1995.