A unit of Kennecott recently entered into a joint venture agreement allowing it to acquire a 51% working interest in the Lockwood massive sulphide project near Everett, Wash.
The project is currently owned 65% by Island-Arc Resources (VSE) and 35% by Formosa Resources (VSE). A drill program carried out by the partners last summer intersected massive sulphides on five successive drill lines along a 350-ft. strike length.
The known strike length of the sulphide horizon was extended to the north under glacial till with a 16-ft. true-width intersection at a depth of 65 ft. which assayed 3.37% copper, 3.3% zinc, 0.073 oz. gold and 2.65 oz. silver per ton. The horizon is open to the north and south on strike, and is also open to depth.
Kennecott’s joint venture agreement with the two juniors allows it to retain a 51% interest in the project by performing a minimum work program, making periodic cash payments, and taking the property to the point where a production decision is made.
If Kennecott gives notice of a production decision, Island-Arc and Formosa will have six months to elect to participate jointly as to a 49% working interest in the mine by providing 49% of mine development expenditures.
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