Noranda to spend $3.5 million on Abermin property

A recent option agreement between Abermin (TSE) and Noranda Exploration, a unit of Noranda (TSE), could see the senior company spend up to $3.5 million on Abermin’s Hope Bay gold claims in the Northwest Territories.

Situated on part of a 60-mile-long greenstone belt, the 7,000-acre Hope Bay property hosts numerous gold showings, one of which yielded 0.84 oz. gold per ton across 7 ft. in previous sampling.

The option deal gives Noranda the right to earn a 50% interest in the property by making cash payments of $115,000 over three years and spending $3.5 million on exploration over a 4-year period. Noranda can earn an additional 25% working interest by providing all funds necessary to bring the property into production. The claims are subject to either a 3% net smelter return or a 15% net profits interests payable to a third party.

So far, a geological and geophysical evaluation of the Wombat zone has been completed by Noranda. Channel sample results include 0.53 oz. gold per ton over 11.4 ft. and 0.39 oz. across 18.5 ft. Induced polarization surveys have traced the mineralized structure over a distance of 2,500 ft.

A diamond drilling program is scheduled to get under way in early spring, according to Abermin Vice- President Christopher Serin.