Fairbanks Gold expands holdings near Fort Knox

Since its inception as a public company, Fairbanks Gold (VSE) has largely focused its attention on exploring the potential of its 51% owned Fort Knox bulk tonnage gold property near Fairbanks, Alaska. Through recent agreements with Teryl Resources (VSE), Fairbanks and its joint venture partners were able to increase by about 50% their present landholdings in the area of the Fort Knox property.

Teryl agreed to assign its rights (up to 15% interest) under a mining venture agreement with Nerco Exploration on 237 claims bordering the Fort Knox property to the south. The Fort Knox joint venture can earn up to an 85% interest in the 9,000-acre Nerco claims by assuming work commitments and payments and by making payments to Teryl.

Under a similar agreement, Teryl assigned its interest in the Stepovich claims (one mile south of the Fort Knox deposit) to the Fort Knox joint venture. Although Teryl can maintain a 10% net profits interest in the 280-acre Stepovich claims, the Fort Knox joint venture can earn a 100% interest by assuming work commitments and making certain payments.

Drill targets have already been identified on both claim groups and a diamond drill program is slated to begin shortly.