KWG Resources (TSE) and Falconbridge (TSE) subsidiary Falconbridge International Investments have reached an agreement under which KWG will earn an interest in three Falconbridge properties in the Dominican Republic and Falconbridge will obtain an option to farm into KWG’s properties in Haiti.
By spending US$5 million over a maximum of five years, KWG can earn a 49% interest in Falconbridge’s Maimon, El Anon and Managua concessions. The Maimon concession has a massive sulphide deposit, the Loma Pesada, with a preliminary mineral resource of 1 million tonnes grading 2% copper, 0.7% zinc and 4.5 grams silver per tonne. It also includes the Loma Barbuito prospect, where drilling encountered a 16-metre, mineralized intersection grading 1.4 grams gold.
The Anon concession features an epithermal gold deposit, Cerro Verde, with a preliminary mineral resource of 270,000 tonnes grading 1.7 grams gold per tonne. The known mineralization at all the concessions is open along strike and at depth, and untested anomalies have been identified.
Falconbridge can earn a minimum 49% interest in KWG’s Haitian properties, under terms to be negotiated, if nickel or nickel laterite deposits are found on the concessions. Also, the company has the right to buy the entire nickel production from the concessions.
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