Cominco, Prime maintain option

TSE-listed partners Cominco and Prime Resources Group intend to maintain their option on an area adjoining the southern boundary of the Snip mine in British Columbia.

Cominco is operator and 60% owner of Snip, an underground gold mine on the Iskut River, 100 km northwest of Stewart. The other 40% is owned by Prime Resources Group.

The companies can acquire a mining lease on an adjoining property from International Skyline Gold (TSE) by spending an aggregate of $2 million. The option can be kept in good standing upon completion of exploration by paying Skyline $250,000 per year. Should the joint venture place the property into production, Skyline will be entitled to a scaled net smelter return royalty tied to the price of gold. To date, the joint venture has spent about $770,000, and a further $500,000 is planned for additional drilling this year.