Based on a recent “letter of understanding,” Kernow Resources & Development (KRD-V) expects to conclude a formal agreement granting Rio Algom (ROM-T) an option to earn 55% of its Joutel property in northwestern Quebec.
The property is 3 km southwest of the Agnico-Eagle mine and mill complex.
To earn the 55% interest, Rio Algom Exploration must spend $1.5 million on exploration over four years and pay Kernow $250,000 over the same period. The major will pay $20,000 on signing of a formal agreement and commit to spend at least $100,000 on the initial work program to be completed this summer.
Rio Algom can earn an additional 20% interest by completing a feasibility study and making a production decision.
Kernow drilled its Joutel property last year. Results include 7 metres of 0.7% copper and 3.35 metres of 2.4% copper plus 0.48 gram gold and 15.9 grams silver per tonne. The drilling also returned numerous narrow intervals of high-grade copper. The junior believes this mineralization represents a hydrothermal feeder, or stringer zone, that is near a massive sulphide deposit.
Early this year, Kernow announced plans to explore its recently acquired Orvilliers project, situated along the Casa Berardi break in northwestern Quebec. The property is believed to have potential to host gold mineralization similar to that found at the nearby Golden Pond deposit, as well as potential for volcanogenic massive sulphide mineralization hosted in felsic rock similar to that found at the Estrades deposit some 11 km to the west.
This year’s work program will include an induced-polarization survey carried out over the property as part of an effort to outline drill targets.
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