Kingswood in property deals with majors

Kingswood Resources (ASE) has negotiated agreements with Kennecott Canada and Soquem on two of its gold and base metal properties in northern Quebec.

Kennecott has an option to earn 100% interest in Kingswood’s 246 claim property due east of the Phelps Dodge base metal deposit near Matagami, Que. Under the agreement, Kingswood will receive cash payments of $300,000 over four years and retain a 3% net smelter return (NSR) royalty. Kennecott can purchase 2% of the NSR for $2 million at any time.

Kennecott plans to test several high priority lithogeochemical targets on the claim group in the near future.

Contiguous and southwest of this property, Noranda is exploring another Kingswood claim group. Limited drilling by Noranda has encountered a chloritized exhalite that has returned values up to 4.22% zinc, 0.13% copper and 0.28% lead over 0.6 metres.

Under the second agreement, Kingswood and Soquem have renegotiated a previous deal on Kingswood’s Eastmain River property where drilling this past winter delineated a new gold zone with intersections up to 0.13 oz. gold per ton over 6 ft.

Under the revised deal, 319 contiguous claims have been added to the property and Soquem will pay Kingswood an additional $150,000. Soquem and Kingswood will each spend $200,000 on exploration. After that, a 50-50 joint venture will be formed.

In other news, Kingswood has elected not to exercise its option on the Ile Bizard Kimberlite property near Montreal. Kingswood is also negotiating financing arrangements with several European investors.