Kennecott,Centurion in joint venture

A preliminary agreement enables Kennecott to earn a 51% interest in several properties of Centurion Mines (NASDAQ).

Most are in the vicinity of the Silver City townsite and Sunbeam mine, south of Eureka, Utah.

To earn the interest, Kennecott must spend US$5 million over five years. It can increase the holding by 19% by paying all costs through to the completion of a positive feasibility study.

Past production from old mines controlled by Centurion in the area is about 1.1 million oz. gold, 65 million oz. silver and 150 million lb. copper. Centurion says the lands to be explored are primarily private and therefore would not be subject to possible restrictions and costs under review, in the U.S., for unpatented mining claims.