Two joint ventures were recently entered into by Deak Resources (TSE), one with Kennecott Canada and the other with Outokumpu Mines of Toronto.
The Kennecott deal covers contiguous properties (one owned by Deak, other by Kennecott) in the immediate vicinity of Deak’s Kerr mine at Virginiatown, Ont. The Outokumpu agreement covers exploration of Deak’s Mindamar property at Stirling, Cape Breton, N.S.
Initial expenditures for the Kerr location will be $1 million by both Deak and Kennecott, with the programs finishing Dec. 31 and April 30, respectively. The target is an alteration zone similar in many respects to that hosting the major Kerr deposits.
Deak is currently drilling from a new drive on the 2,650-ft. level as part of the program and Kennecott started surface drilling late last year. Deak has received regulatory approval for a private placement of 3,750,000 treasury shares worth $1.5 million.
The Mindamar mine is a former base metal producer on the Stirling claim group (184 claims in size). Under the terms of the agreement, Deak grants to Outokumpu the exclusive option to acquire an undivided 50% interest in the property by funding an initial $200,000 exploration program. The 50% interest would be earned after incurring a total of $750,000 in exploration expense. The company has the further option to increase its interest to 51% and become the operator.
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