Falconbridge drilling at White Star

Shares of White Star Copper Mines (CDN) broke through the $1 mark in active trading on growing speculative interest in the current drilling being carried out by Falconbridge on the company’s small but key B claim group at Timmins, Ont., near the Kidd Creek mine.

Although few further details were available at presstime, Falconbridge’s Michael Knuckey, vice-president of exploration, told The Northern Miner that a heavier drill is being set up near the west boundary with Chance Mining & Exploration (CDN), the shares of which likewise rose smartly. The initial hole here will likely go to at least 2,000 ft. to follow up results of a recent down-the-hole geophysical survey. A second drill is probing near White Star’s northeast corner on what is known as the Wilpat option.

“We are very persistent in our exploration and don’t give up easily”, Knuckey remarked, adding that there is a large exploration program still ahead in the company’s drive to find satellite massive sulphide orebodies to feed the big Kidd Creek complex.

Falconbridge has already spent upwards of $2.5 million on the Chance property where it has found a small but good grade orebody 6,000 ft northwest of the Kidd orebody. This deposit lies at a depth of around 2,000 ft. Falconbridge would like to follow up with an exploration drive across the White Star ground.

Chance, which is controlled by Conwest Exploration (TSE), retains a 10% net profit royalty interest.

Under the White Star deal, Falconbridge paid $100,000 up front and undertakes to spend at least $600,000 on that ground this year. It can acquire a 100% interest in the four claims by paying the company $100,000 annually for the next five years. If exercised, White Star will get a 3% net smelter return (rather than net profit) until Falconbridge recoups its capital costs, rising to 4.5% thereafter.

Falconbridge also holds an option on White Star’s A and C groups in that area, and has been granted a 2-year option on one million White Star shares at $1 each.