NEWS ROUNDUP — BHP options Matagami prospect

Alberta-listed Kingswood Resources has granted BHP Minerals Canada the right to earn a 70% interest in its base metal property southwest of Matagami, Que.

BHP, which will operate the project, can earn its interest by making cash payments of $250,000 and spending $3 million on exploration over seven years. Should Kingswood dilute its interest to 15%, it would then convert to a 2% net smelter return royalty which is subject to a partial buyout. The 133-claim property is next to the Phelps Dodge zinc deposit and covers a strongly chloritized exhalitive horizon. Previous drilling there has intersected values up to 4.22% zinc, 0.13% copper and 0.28% lead over 0.6 metres. The mineralized horizon has an indicated and untested strike length of 3.5 km.

BHP plans a 1,800-metre program to evaluate the horizon further.