Bid anticipated for Kerr copper-gold deposit

Earlier this summer Western Canadian Mining Corp. (VSE) retained Wood Gundy Inc. to find a buyer for its 74% interest in Sulphurets Gold Corp. (VSE) which owns 100% of the recently-discovered copper- gold deposit.

Wood Gundy advised Western Canadian Mining that 18 of the major mining companies have visited the data room in Vancouver and 11 have visited the Kerr property.

According to Robert Hewton, vice-president and general manager of Western Canadian, all of the companies have access to the financial and technical resources to bring the Kerr property into production.

The company expects that any acceptable bid for its interest in Sulphurets Gold will likely result in a follow-up offer to the minority shareholders of Sulphurets.

At the end of last season’s work program, the Kerr deposit was reported to contain a geological reserve in excess of 66 million tons grading 0.86% copper and 0.01 oz gold per ton.

But Western Canadian Mining said it has a high level of confidence that the Kerr deposit, in combination with the Tedray property to the north on which Sulphurets has the right to earn a 50% interest, “will develop into a profitable world-class mining operation with reserves of as much as 150-200 million tons.”

A drill program is continuing on the combined Kerr-Tedray properties, with eight holes completed to date. Sulphurets Gold reports that copper sulphides are visibly present over long intersections in all drill holes successfully completed. Assay results are expected shortly.

There is as yet no road access to the property which is located in a remote and rugged area some 60 miles north of Stewart.

]]>