Nerco Venture

Diversifying its interests outside of North America, Nerco Minerals, a subsidiary of Nerco Inc, has entered into two joint venture agreements which will see it explore for minerals in the prolific Kalgoorlie gold belt of Western Australia. The agreements with Carbine Gold N.L. include a property in the Wiluna Lake shear zone which already hosts several gold producers.

One of the agreements, the Yindi joint venture, involves drilling a gold target approximately 93 miles east of that thriving mining community. Drilling is under way and Nerco Exploration will have the right to acquire a 50% interest in the property for an expenditure of $400,000 in 1988-89.

A $200,000 regional reconnaissance program in planned over a large geographic area east of Kalgoorlie within the Yilgarn gold fields. The work program will include mapping, sampling, identifying minerals targets, and property acquisitions. Nerco will be operator for the programs with Carbine Gold conducting the work under service contracts.

According to Nerco Minerals President, Lawrence E Heiner, “these joint ventures represent our first business activities in Australia, and our desire to expand the company’s international exploration program in regions with known geologic potential for new discoveries and production.”

Separately, Nerco just concluded an exploration joint venture with Newmont Exploration and American Copper & Nickel Company. Drilling is under way for precious metals in southwest Kiowa County, Okla., with Nerco as operator. Reconnaissance exploration was completed during the 1986 and 1987 field seasons and Nerco recently received a permit from the U.S. Bureau of Land Management to conduct exploratory drilling on certain federal lands in the county.