Dundee-Palliser to drill near VSM zinc discovery

So far at Grevet, VSM has outlined 2.24 million tonnes of grade 8.79% zinc, 0.45% copper and 0.21% lead and 43.6 g silver per tonne in two horizons. As reported (N.M., Oct 2/89), a 44-ft intersection of economic ore was located recently by VSM at a depth of 1,460 below surface.

Initially Dundee-Palliser has agreed to pay $35,000 for its interest in the Grevet and Mountain Twp. claims before making additional staged payments totalling $665,000 by 1994.

Under the proposed agreement, a vendor retains a 2% net smelter royalty at the property where a 2,500-m drill program is planned.

Dundee-Palliser is negotiating a flow-through funding deal to finance exploration at Grevet and Mountain Twp.

MVP Capital, which holds 66% stake in Dundee-Palliser, will have the right to earn a 50% stake in the claims after the latter company has spent the first $250,000 on exploration. After receiving results from initial exploration, MVP has 30 days to decide whether or not to exercise the option, assuming the deal is approved.

In other news, MVP has agreed to purchase $250,000 of Dundee- Palliser’s convertible debentures and warrants as part of a plan to reduce the $350,000 owed to MVP by Dundee.

Also, a formal agreement involving Dundee-Palliser, North American Rare Metals (TSE) and Agnico- Eagle Mines (TSE), should clear the way for underground exploration at the Vezza Twp. gold property in northwestern Quebec.

Agnico-Eagle has already agreed to earn a 51% interest by spending $7.4 million on the Vezza property where drill-indicated reserves of two million tons grading 0.161 oz (5.5 g) gold have been outlined. Underground exploration there had previously held up by Kennco Exploration which has since sold its rights to the property.

In northwestern Quebec, a 1,250-m drill program is scheduled to begin later this month at the Tardif and Bruneau Twp. gold/base metal properties where Dundee and North American Rare can earn a combined 80% interest.

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