Placer Dome to explore Wheaton River

Placer Dome will be the operator of work programs on the claim group with the exception of the phase-one program where Skukum Gold is to act as Placer Dome’s contractor.

Placer Dome’s initial $400,000 private placement will allow it to have two representatives on Skukum Gold’s five-man board. After it earns a majority interest, the company will be entitled to majority representation.

In a separate deal, Placer Dome signed a letter of intent with Golden Zone Resources (VSE) allowing it to start an exploration program on the Golden Zone property in Alaska.

The property has reserves that are estimated to contain 230,000 oz gold, the majority of which can be mined by open pit methods.

The agreement also grants Placer Dome an option to form a joint venture by February, 1990. The major company can earn up to a 60% interest in the joint venture by spending $6 million on exploration and development over six years.

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