Fort Knox Gold and Inco busy near Kenora

Could you please bring me up-to-date on Fort Knox Gold. I understand Inco has taken larger control or interest in the company. Please verify. G.S. Toronto, Ont When Fort Knox Gold Resources was originally incorporated in 1984, Inco Ltd. had a 26% equity interest as well as board representation in the company. At present, Inco still is represented on the board, but its stake in the company stands at approximately 17%.

At the time of Fort Knox’s incorporation, Inco assumed the management of exploration programs on all Fort Knox’s operations, including the 48-claim Atikwa Lake project which hosts the old Virginia mine site located southeast of Kenora near Dogpaw Lake. However, Inco is no longer involved in this project.

Fort Knox’s Casa Berardi-area property, located about 10 miles northeast of Joutel, Que., has been optioned to Duncan Gold Resources which is funding the exploration work. Duncan has the right to earn a 50% interest in the property by spending $400,000 by 1988.

This past fall, Fort Knox and Inco signed a deal whereby Fort Knox can earn a 40% interest in one of Inco’s properties by turning over 500,000 shares and spending approximately $2 million over the next four years. The 329-claim property is on Kakagi Lake, near Crow Lake, some 70 kilometres southeast of Kenora. Inco has spent $850,000 on the property to date, including a number of geophysical surveys and 17 drill holes.

Fort Knox is undertaking the work program here, under Inco’s management, which for this year includes stripping, trenching and diamond drilling. Fort Knox Gold trades on the Toronto Stock Exchange at the current level of about 60 cents . Its year high and low is 85 cents and 26 cents , respectively.

The company says it has no relation to Fort Knox Minerals which is listed on the Vancouver Stock Exchange.