Two companies active in north-central Ontario, Avalon Ventures (VSE) and Starcore Resources (VSE), have optioned their adjoining base metal properties to Cominco (TSE).
The agreement, which is not yet final, calls for Cominco to pay Avalon $200,000 cash for a 60% interest in the Percy Lake property, and spend $1 million exploring it by August 1999. Cominco can also earn a 60% interest in Starcore’s adjacent Percy Creek property, in return for $100,000 cash and a commitment to spending $500,000 on exploration by August, 1999.
The deal will also require Cominco to spend a minimum of $100,000 on exploration on the two properties by August 1996, and pay $40,000 to Avalon and $23,000 to Starcore by May 1996.
The properties lie 100 km northeast of Sault Ste. Marie, Ont., in the northeastern portion of the Batchawana greenstone belt.
Avalon recently discovered a base-metal showing on its property, grab samples from which averaged 1.01% copper, 1.19% lead and 7.38% zinc, as well as 33 grams silver per tonne.
Cominco will carry out linecutting and geophysics, to be followed by geological mapping and geochemical sampling.
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