A recent letter of agreement will allow a Canadian unit of Phelps Dodge (NYSE) to earn a 100% interest in 108 units held by World Wide Minerals (VSE) near Princeton, B.C. World Wide Minerals’ land package is near the Similco open pit copper-gold mine operated by Princeton Mining.
Charles Martin, president of World Wide Minerals, said previous work on the property indicated the presence of a large copper-molybdenum porphyry in the area covered by the agreement. This work included limited drilling and extensive geophysical and geochemical work.
Subsequent work is reported to have indicated the presence of low-grade gold and silver in association with the porphyry. And the company said its work last fall revealed a possibility of a large sulphide replacement body in the skarn and other areas south of the porphyry.
To earn its interest, Phelps Dodge must spend $2 million on exploration and make cash payments of $500,000 over five years. A minimum royalty will be paid after this period, and 2.5% net smelter return beginning in the first year of production.
World Wide retained 92 units to the south of the ground optioned to Phelps Dodge. This area contain numerous exploration targets, including 10 areas reported to be anomalous in gold and silver. The company plans to divide the land package into two areas, as one of the areas is also considered to have potential for platinum group metals.
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