After lying low for almost three years, Fort Knox Gold Resources (TSE) has optioned two groups of claims in the Shining Tree area, near Cobalt, Ont. Inco (TSE), which recently increased its stake in Fort Knox from 30% to 40%, has agreed to oversee and finance the first year of exploration on the property.
Fort Knox will focus on gold exploration, although the claim blocks also contain a number of “intriguing base metal targets,” said Secretary-Treasurer Donald Humby. The company will investigate the property with an initial program of mapping and sampling, he said.
The claims, mainly within Asquith and Churchill twps., consist of the Gosselin group (12 claims) and the Knox group (15 claims). Both blocks are subject to a 1% net smelter royalty.
Inco has acquired 600,000 shares of Fort Knox at 25 cents per share. Subject to approval by Fort Knox shareholders, a $58,886 debt owed to Inco will be settled by the issue of 235,544 additional shares.
The Shining Tree area is known for its gold prospects, but resident geologist Leo Owsiacki, in his annual report on the area, mentioned the potential for deep-seated nickel, copper and platinum mineralization below the thick layer of overburden.
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