An agreement with Gitennes Exploration (GIT-A) allows Placer Dome (PDG-T) to earn a 55% interest in the Fishhook gold property, 120 km northwest of Yellowknife, N.W.T.
The property hosts several iron formation-hosted gold zones, which have been explored by Gitennes over the past year.
The major can earn the interest by spending $3.4 million on exploration over four years, including at least 7,800 metres of drilling. A minimum of $500,000 will be spent on the first-year program.
Once Placer Dome earns a 55% interest, it can elect to earn an additional 5% by spending $2 million. At this time, the companies will form a 60-40 joint venture.
Gitennes has interests in other properties being explored for iron formation-hosted gold deposits near Fishhook, including a 25% stake in the Damoti Lake gold project.
Meanwhile, in Peru, the company has acquired an option to acquire the 1,900-hectare Virgen gold property. In return, Gitennes would be required to pay US$800,000 and spend US$1.5 million on exploration over four years.
The property comprises four significant breccia zones hosting epithermal gold mineralization.
The main zone, which is partially exposed, has been mapped over a length of 300 metres. It measures 100-190 metres wide with a minimum thickness of 85 metres. Preliminary chip sampling returned 50 metres averaging 3.65 grams gold per tonne and 100 metres averaging 2.51 grams.
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