Queenston, Franco-Nevada acquire Inco ground near Kirkland Lake

A land package exceeding 100 sq. km in area has been assembled by Queenston Mining (TSE) and Franco-Nevada Mining (TSE) in the Kirkland Lake area of northeastern Ontario, and the two companies plan to spend $3.5 million exploring it.

A 50-50 joint venture between the two companies will assume title to most of their properties in the area. In addition, Queenston will exercise its right of first refusal on the Kirkland Lake gold properties held by Inco (TSE), and place them in the joint venture.

The Inco deal, which carries a price tag of $1.25 million, is subject to regulatory approval and due diligence investigations by Queenston and Franco-Nevada. It gives the joint venture full ownership of the 630-tonne-per-day McBean mill, 15 km east of Kirkland Lake, as well as the McBean and Anoki properties.

The joint venture will control properties covering a 27-km strike length along the Kirkland Lake-Larder Lake break, a fault zone where most of the gold deposits of the Kirkland Lake and Matachewan camps in Ontario, and the Rouyn and Val d’Or camps of Quebec are clustered.

The land package held by the joint venture has properties with 1.2 million oz. in gold resources, based on preliminary estimates.

Queenston will manage the joint venture for the first year, and the companies have budgeted $3.5 million for exploration. A campaign to drill targets along the Kirkland Lake-Larder Lake break is to start this summer. The program will concentrate on targets in the alkalic volcanic rocks of the Timiskaming Group and in the komatiitic volcanic rocks of the Larder Lake Group.