THE GLOBAL SEARCH FOR GOLD SPECIAL — Teck extends gold search to Australia

By acquiring an interest in two junior Australian companies, Teck (TEK-T) has expanded its gold exploration efforts.

The company has gained a 15% stake in Camelot Resources by purchasing 21.5 million of Camelot’s common shares at A27 cents each. Camelot owns 40% of Australian junior Northern Gold NL, as well as the Mt. Gibson gold mine in Western Australia, which is expected to yield 60,000 oz. this year.

The agreement covers joint participation in gold exploration programs and acquisitions in Australia, as well as representation by Teck on the Camelot board of directors.

In a separate agreement, Teck bought 3.3 million common shares of Northern Gold NL for A$1 million, with an option to buy an additional 7 million shares in 1997 and 1998 at a total price of $A2.9 million. Also, Teck can earn a half interest in other projects within the joint venture by preparing a feasibility study.

Proceeds from the purchase will be used to explore the company’s Pine Creek gold properties in northern Australia.

Earnings for the company in the second quarter of 1996 were $20 million, $2 million higher than the same period last year. Mining revenue for the quarter totalled $181 million, $3 million higher than last year’s second quarter results. The increase was due to higher production volumes, offset by weaker copper prices.

Meanwhile, Teck is leading a consortium to negotiate an agreement with the government in Kazakhstan to develop the Vasilkovskoye gold deposit, which contains 100 million tonnes grading 2.4 grams gold per tonne. Due diligence work and contract negotiations are in progress.

Elsewhere, engineering work on the Petaquilla copper-gold project in Panama is continuing, with the feasibility study scheduled for completion in the fall of 1996.