Placer to explore ground near the Kerr property

An aggressive work program for 1992 is being planned by Placer Dome (TSE) for a newly acquired land package near its Kerr copper-gold deposit in the Iskut River region of north-western British Columbia.

Late last year, the major reached an agreement with Newhawk Gold Mines (TSE) to acquire a 100% interest in the Sulphside claims, part of the Sulphurets property adjoining the Kerr deposit.

Newhawk held a 60% interest in the claims, but negotiated the right to acquire the 40% interest held by Granduc Mines (TSE) for $3.5 million, which will enable it to sell a 100% interest to Placer.

But Newhawk will retain a 60% interest in the Bruceside area which covers the advanced Sulphurets (West zone) gold-silver deposit. The company will continue to explore the Bruceside area in order to prove up additional reserves to those contained in the West zone, where a production decision was deferred in 1990 pending higher metal prices.

Last year, Newhawk shifted its focus from the high-grade precious metals project to test other areas on the property with known potential for copper-gold mineralization. Encouraging results were reported from this program, and the Sulphside claims will be further explored by Placer Dome. The major acquired the Kerr deposit in 1990 for $12 million. Exploration and diamond drilling since then has confirmed the presence of 138.6 million tons of material grading 0.62% copper and 0.008 oz. gold per ton. Placer Dome also has agreements with several other juniors holding claims in the region that will enable it to expand its total land position near the Kerr deposit.

As for Newhawk, it recently began a search for economic deposits located mainly in the U.S. and Mexico. The company intends to use the proceeds of the property sale to Placer Dome to review grassroots targets, joint venture projects and outright acquisitions. But Newhawk President Donald McLeod said Canadian properties “with exceptional merit” will also be considered.