Conwest, Falconbridge team up on Sudbury bet

The drilling is part of an agreement signed between both companies which grants Falconbridge and Conwest certain rights on each others properties in Graham Twp.

Located 4,000 ft east of Falconbridge’s operating Lockerby nickel- copper mine, Conwest’s Graham property was last drilled by the company in the late 1960s, Michael Zurowski, Conwest’s vice president of exploration, told The Northern Miner.

Conwest’s work outlined reserves of 4.3 million tons grading 0.52% nickel and 0.33% copper in a mineralized body extending to a depth of 1,300 ft.

The option deal also includes Falconbridge’s property immediately to the north of the Conwest claims. Falconbridge says the Conwest mineralized zone extends onto its claims.

Importantly, deep drilling by Falconbridge on its claims intersected high grade nickel-copper mineralization at a depth of 3,457 ft. The hole cut two sections assaying 4.02% nickel and 0.84% copper across 58 ft and 7.13% nickel and 1.2% copper across 25 ft.

Drilling with up to three rigs is expected to begin shortly, Zurowski says. The work will test the favourable nickel-bearing horizon common to both properties at depths between 3,000 ft to 5,000 ft.

The deal is in two parts. The first gives Falconbridge the right to earn a 70% stake in Conwest’s property by making exploration expenditures of $4 million over a five-year period. Upon earning a 70% interest, Conwest has the right to assume a participating 30% interest or a net smelter royalty.

The second part of the agreement gives Conwest the right to form a joint venture which would include both Falconbridge and Conwest properties by spending $6 million on exploration on the Falconbridge claims to earn a 30% interest in both properties. This can happen once Falconbridge has spent the first $3 million on the Conwest ground and has earned a 50% interest.

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