Though still subject to due diligence and the resolution of various technical and legal issues,
Although no tonnage and grade figures have been released for the Pipe 1 and 2 deposits, which together comprise Inco’s Pipe Complex, some mining has taken place at Pipe 1. Furthermore, both deposits are equipped with some surface infrastructure, shafts and limited underground development.
As a first step, Nuinsco intends to evaluate the mining potential of the deposits, which are on the same geological formation. If all goes well, the partners would negotiate a mining accord whereby Nuinsco would be retained by Inco to mine the deposits. Processing would be done by Inco at its Thompson facilities. However, Inco must first satisfy itself (and other parties, including government) that the mining proposal is technically feasible and legally acceptable. Inco would retain the existing mining leases but would provide Nuinsco with covenants relating to compensation, in keeping with the “spirit and intent of a definitive agreement.”
Under a previous (1999) agreement, Nuinsco is exploring Inco’s Mel lease and claims, also in the Thompson nickel belt. The junior can earn 100% of this ground, subject to Inco’s right to buy back a 51% undivided interest in any new discoveries.
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