Noranda to earn 51% in Queenston’s bet

Noranda Exploration, a unit of Noranda (TSE) recently agreed to earn a 51% stake in Queenston Mining’s (TSE) Pawnee gold property in Kirkland Lake, Ont., by spending $1.1 million on exploration over four years.

Under the agreement, if and when Noranda exercises its option, the two companies will embark on a joint venture.

The 42-claim Pawnee property straddles a geological formation called the Larder Lake Break in Lebel Twp. The property also contains a small exploration shaft with limited underground workings.

While no exploration work has been carried out on the property since 1982, it is underlain by two favorable gold horizons and previous drilling returned a 14.8-ft. intersection averaging 0.24 oz. gold per ton.

Operator Noranda is expected to begin exploration work almost immediately.

Queenston Mining is the product of a recent merger involving Queenston Gold Mines and HSK Minerals. Shares of the company are trading at around $1.15.