Silvera, Placer Dome enter joint venture

A joint-venture agreement involving the Wapiyao Lake and Bing Lake properties in the La Ronge gold belt of northern Saskatchewan has been entered into by Silvera Resources and Placer Dome.

The agreement calls for $750,000 to be spent during a 3-year period on Silvera’s properties. Silvera reports a drilling program this year indicated gold mineralization, grading up to 0.27 oz per ton, in two of 10 holes on the Wapiyao Lake property.

Provided the $750,000 is spent by Dec 31, 1990, Placer Dome will have earned a 60% interest in the properties. Of that amount, $250,000 will be contributed by Silvera and $500,000 by Placer Dome.

Placer Dome may acquire a further 20% interest by spending an additional $1 million on exploration work.

Placer Dome has a further option to purchase the remaining 20% of the interest from Silvera for $3 million, provided Placer Dome has acquired an 80% interest in the properties.

The $250,000 committed by Silvera must be spent prior to Dec 31, 1988.