The 406-claim group is located in Fiedmont and Courville twps. Drilling to date by Tundra has detailed a 2,400-ft long zone, the MP zone, where values up to 0.97 oz gold over 10.1 ft were encountered in linear magnetic structures. Good values were also reported from a second zone some 4,400 ft away from the most southerly hole on the MP zone.
To earn the interest, Placer Dome is required to pay a total of $610,000 in staged option payments and spend $2.7 million on exploration over four years, including a firm commitment for $300,000 in the 1989 season.
Tundra would remain operator for the first year with Placer Dome approving the programs, with Placer Dome then taking over as operator to manage ongoing exploration and development on the property.
At the end of the option period Tundra can maintain a 40% proportionate interest or choose to dilute to a 15% net profits interest.
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