Vancouver —
Included in the package are ground follow-up geophysical, geological and geochemical data and drilling records for specific areas of Ontario.
Aurora will use the digitized data to locate targets prospective for nickel/copper/platinum-group-metal (Ni-Cu-PGM) mineralization.
The deal calls for Aurora to spend $1.5 million over four years on follow-up geophysical targets. Any properties the junior acquires that are on ground covered by the geophysical data will be subject to a royalty, capped at $2.5 million and payable to Inco upon commercial production. Aurora will act as operator on any exploration programs.
Also, the nickel major will have the right to acquire a half-interest in any property acquired by Aurora by funding twice the amount the latter spends on the property, including acquisition, exploration and development costs. Inco, in addition, retains the right to buy any Ni-Cu-PGM products at normal commercial rates.
Either party can then increase its equity in any joint-ventured property by 10% by solely funding a feasibility study. That party can boost its interest level by another 10% by funding the deposit to commercial production.
In late December 2000, armed with new geophysical data, Aurora expanded its drilling program at its Foy Ni-Cu-PGM property near Sudbury, Ont. The junior will now drill 8,000 metres, as opposed to originally planned 5,000 metres.
The program is testing a 500-metre strike length of anomalous mineralization associated with a radial feature known as the Foy Offset Dyke. Down-hole electromagnetics will be used to explore for deeper-seated mineralization. The holes will be drilled to a depth of 800 metres.
At last report, the company was drilling the second hole and had hit several pods, lenses and veins of disseminated and massive sulphide mineralization in both holes 1 and 2. Assays are still pending.
The junior is earning a 60% stake in both the Foy and Footwall projects from
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