Placer Dome options claims near Kerr copper-gold deposit

Associated companies Kenrich Mining (VSE) and Ambergate Explorations (VSE) recently completed an option agreement allowing Placer Dome (TSE) to earn interests in various claims near the Kerr deposit north of Stewart, B.C.

The properties adjoin or are near Placer Dome’s Kerr deposit which has preliminary reserves of 66 million tons grading 0.86% copper and 0.01 oz. gold per ton.

The major intends to explore the Kenrich-Ambergate properties for potential deposits similar to Kerr. A portion of the optioned lands includes a potential mill site for the Kerr deposit should a production decision be made. Before being allowed to buy the land for a mill site for $500,000, the major would be required to explore the property to assess its economic mineral potential.

Placer Dome can earn 60-70% interests in the various properties by making property option payments of $575,000 and by spending a minimum of $2.4 million on exploration before the end of 1995. The two juniors would be carried through completion of a feasibility study as to a 30% interest. The payments include $50,000 paid to the two juniors on signing, and a commitment to spend $150,000 on exploration this year.

Kenrich and Ambergate are planning exploration programs for various properties totalling 64,000 acres in northwestern British Columbia. The agreement with Placer Dome involves a further 6,000 acres held by the two juniors.