Noranda and Abcourt rework Vendome deal

Noranda (TSE) and Abcourt Mines (ME) have reworked their agreement regarding the Vendome property near Val d’Or, Que.

The property consists of seven lots and six half-lots in Fiedmont Twp., together with 16 lots in Barraute Twp. Proven reserves are estimated at 495,000 tons (20% dilution) grading 0.036 oz. gold and 1.73 oz. silver per ton, as well as 0.48% copper and 8.07% zinc.

The property had been developed in the 1950s by previous owners. A 525-ft. shaft was sunk, following which development occurred on three levels with 7,000 ft. of drifts and crosscuts. Attempts to bring a mine into production in the 1980s fell short, owing to a drop in the price of silver and of zinc.

The new agreement supersedes a previous (1983) agreement between Noranda and Abcourt. Under the new deal, Abcourt will cede to Noranda six half-lots in Fiedmont Twp. and nine half-lots in Barraute Twp.

Also, Abcourt will be permitted to cancel a promised $300,000 payment to Noranda. Pursuant to previous agreements, Abcourt will receive a $2-per-ton royalty on any production exceeding 50,000 tons, up to $1.35 million. And following that, it will be entitled to 20% of the net profits.

Abcourt keeps the surface rights on four half-lots, together with the surface plant installations now in place. The latter will be available to be leased or purchased for the development of a deposit.

Noranda has six months in which to appraise the property, and, during that period, it must drill two holes, each of which will be 2,460 ft. deep.

Noranda may decide, within six months, to notify Abcourt that it wishes to form a 50-50 joint venture with Abcourt on the entire Vendome property.