Vancouver-based NovaWest Resources (NVE-V) will acquire a half-interest in the Grand Nord polymetallic prospect in northern Quebec. The remainder will be held by project operator Falconbridge (FL-T).
In return, the junior has agreed to spend $1 million on a first phase of exploration this year.
The prospect was outlined in 1997, when the Quebec government carried out an exhaustive geochemical survey covering 351,000 sq. km of northern Quebec.
About 27,000 samples confirmed the area’s potential for hosting economic quantities of nickel, copper, cobalt, platinum group metals, gold and other metals.
To reduce the cost of the survey, the government enlisted the help of five companies, including Falconbridge. In return, each participant received access to the survey data well in advance of the public release date (November 1998).
The Falconbridge-NovaWest deal includes an area-of-interest agreement that encompasses the entire 351,000-sq.-km area surveyed by the government.
NovaWest will be permitted to study the survey data upon their public release. The junior will then have the right, until June 1999, to buy a half-interest in any additional mineral permits acquired by Falconbridge within the survey area. To exercise this right, NovaWest must reimburse Falconbridge 60% of its acquisition costs.
NovaWest’s participation in the 7-permit Grand Nord project more than doubles its exploration interests in Quebec. The junior is now involved in exploring 17 permits covering 1,157 sq. km in the northern part of the province.
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