Nickel giant Inco (TSE) has entered a joint venture with Jinchuan Non-Ferrous Metals, a major producer of nickel and other ferrous metals in China and a subsidiary of China National Non-Ferrous Metals Industry Corp. (CNNC).
The partners will construct and operate a plant near Shanghai to produce nickel salts for the Asian market. The total investment in the venture is estimated at US$10 million, with Inco and Jinchuan holding a 65% and and 35% interest, respectively.
Meanwhile, Inco has been considering forming other commercial relationships with Jinchuan and CNNC. Inco Pacific, a Hong Kong-based affiliate, will open an office in Shanghai to strengthen Inco’s position in China. On the Canadian scene, Inco recently optioned a 301-claim group in Casa Berardi, Estrees and La Berge twps. in Quebec, from joint owners East West Resource (VSE) and Cross Lake Minerals (VSE).
Previous work by Cross Lake identified a series of electromagnetic conduc-tors and induced-polarization anomalies considered to be important gold and base metal targets. The property covers up to two volcanic sequences that are interpreted to be equivalent to the Poirier series of rocks at Joutel, 35 miles to the east. The Poirier series hosts three copper zinc deposits known as Joutel Copper, Poirier and Explo-Zinc, as well as the overlying Agnico Eagle gold horizon.
Drilling in 1993 intersected anomalous gold and arsenic-zinc values in one horizon and copper-zinc values in another.
Inco can earn a half interest in the project by spending $650,000 and paying $75,000 over three years. It can earn a further 15% by spending an additional $750,000 within five years of the start of the option.
This winter, Inco plans to perform additional geophysical surveys and drill several targets.
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