Placer-Kinross JV options Band-Ore property

The Porcupine Joint Venture has signed a letter of intent to earn a 70% interest in the 144 Property, about 30 km southwest of Timmins.

The deal with Band-Ore Resources (BAN-T) gives Placer Dome (PDG-T) and Kinross Gold (K-T) a foothold in the area west of Timmins, along strike from mineralization recently outlined by Lake Shore Gold (LSG-V).

Placer and Kinross pay $500,000 in cash and commit to a $2.5-million work program over five years to get the 70% interest. Band-Ore’s 30% interest is carried up to the completion of a feasibility study.

The block covers the western part of the Thorne property held by Band-Ore in Carscallen, Denton and Thorneloe Twps. It wraps around the southwestern corner of Band-Ore’s Thunder Creek property, currently under option to Lake Shore.

Lake Shore, which is earning a 60% interest in Thunder Creek by spending $1.7 million over five years and making cash and share payments to Band-Ore, has identified two gold zones on that property. The ground optioned by Placer and Kinross covers the extension of the main southwest-striking break. Ultramafic intrusive rocks, similar to the host rocks of the Thunder Creek mineralization, extend on to the 144 Property.

Lake Shore and Holmer Gold, which merged with Lake Shore at the end of 2004, had outlined an indicated resource on their adjacent Timmins Gold property of 1.4 million tonnes grading 16.45 grams gold per tonne. There was an additional inferred resource of 1.2 million tonnes averaging 5.46 grams per tonne, including about 1 million tonnes of low-grade material. Pre-feasibility studies are underway at the property, which is immediately northeast of Thunder Creek.

The eastern part of the Thorne property, not included in the deal, contains the Golden River gold deposits, where a 1998 estimate made for Band-Ore (based on standards that were then current) put the size of the resource at 4.5 million tonnes grading 3.3 grams gold per tonne.