Abo, Bema find Harrison partner

Partners Abo Resource (VSE) and Bema Gold (TSE) recently found a new joint venture partner to fund ongoing work at their Harrison gold property, 60 miles from Vancouver, B.C.

Under the terms of a letter agreement that is still subject to various approvals and conditions, Pacific Comox Resources (VSE) can earn up to a 51% interest in the property by spending $5 million on exploration over the next five years. This amount will include the completion of feasibility study. As an interesting aside, two Pacific Comox directors, Donald Allen and Douglas MacQuarrie, made the initial discovery of the Jenner and Portal zones in 1983 while working as a consulting team under contract to Abo. Since then, over $7 million has been spent on surface and underground exploration work by Abo, Kerr Addison Mines and Bema Gold. Bema became operator in 1988 after buying out Kerr Addison, and is also the controlling shareholder of Abo.

Preliminary reserves are currently estimated at 5 million tons grading about 0.10 oz. gold per ton, and the deposit is reported to be amenable to bulk underground mining methods. Pacific Comox is currently planning a work program aimed at locating new reserves, upgrading current reserves, and evaluating mining and milling methods.

After Pacific Comox has earned its interest, Abo will assign its 25% working interest to Pacific Comox (to bring Pacific Comox’s interest to 76%) in return for a 3% net smelter royalty. If the deposit has reserves of over one million ounces gold, Bema will have the option to back in for an additional 27% working interest. Bema would then have a 51% interest, while Pacific Comox would retain 49%.