Northern Dynasty involved with Placer

Following the acquisition of the WX Syndicate, Placer Dome U.S., a unit of Placer Dome (TSE), is an equal partner with Northern Dynasty Explorations (TSE) in the Little Bald Mountain mine. The mine, an underground heap leach gold-silver operation in Nevada, produced 5,425 oz. gold and 1,589 oz. silver in 1989.

Placer has also entered an agreement allowing it to earn up to a 60% interest in the property surrounding the mine by spending US$1.5 million over four years. Placer must spend US$350,000 in 1990, and a minimum of US$200,000 in each subsequent year.

Dynasty will retain a 44% interest in the current mining operations and can retain up to 31.6% working interest in the area outside the mine.

Dynasty will remain the operator of the mine while Placer will manage its exploration program. The company notes that the exploration program will likely concentrate on areas of projected mineralization across claim boundaries with Placer’s adjacent Bald Mountain property.