A recently completed agreement gives New Canamin Resources (VSE) the right to acquire a 100% interest in the Huckleberry and Whiting Creek copper deposits owned by Kennecott.
The two deposits are about 60 miles southwest of Houston, B.C., and to earn the interest, New Canamin must spend $300,000 per year during a 5-year period. Kennecott has the right to back in for a 60% interest at the time a production decision is made by paying 150% of expenditures in excess of the $1.5 million requirement.
Previous work on the Huckleberry by Granby Mining resulted in a reserve estimate of 85.6 million tons grading 0.40% copper based on a 0.3% copper cutoff grade and a strip ratio of 1.11-to-1. Granby’s metallurgical work estimated copper recoveries at 94.1% to a concentrate grading 27% copper. Whiting Creek contains what the company describes as a relatively large underexplored mineral system with four major mineralized zones identified by Kennecott to have a potential for substantial tonnage.
New Canamin hasn’t released a definitive working plan for the two properties although the company recently completed a 160,000-share private placement at 75 cents per share giving it a working capital position in excess of $100,000.
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