The agreement requires China First to pay an initial $30,000 and later $100,000 before it can acquire the mining lease covering a 100% working interest in the deposit from Toronto consulting firm S.N. Charteris and Associated Inc.
Discovered in 1965, and explored extensively by Cleveland-based M.A. Hanna Co., the property contains indicated reserves of about three million tons grading 1.41% nickel and 0.68% copper.
Denver-based American Mines Services has agreed, subject to gaining regulatory approval, to carry out an exploration and development which includes 10,800 ft of core diamond drilling.
The proposed program is expected to cost about $852,000(US) of which half is payable in shares at 35 cents (US) per share and the balance in cash.
It is hoped that when the program is completed, China First will be in position to determine the feasibility of starting a low cost, open pit mining operation. “Reserves have been well defined, all we need is more metallurgy,” said China First Chairman James Stephenson.
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