Kennecott out of Hanover JV

Citing an unsatisfactorily small land position, Kennecott has withdrawn from a joint venture with Hanover Gold (NASDAQ) in southwestern Montana.

(An increase in reserves was needed to meet Kennecott’s requirements for an open-pit project, yet this increase failed to materialize.)

Kennecott had defined 1.6 million oz. of drill-indicated gold resource. Together with Hanover, it spent more than US$7.5 million on exploration, acquisitions and development since May, 1992.

Hanover now has sole ownership of all claims, reserves and exploration data. The New York state-based company is mining gold from its underground mine in Alder Gulch and plans to increase annual production to 15,000 oz. by year-end. The mining district of Alder Gulch-Virginia City is one of the oldest in the state, dating back to the 1860s.