A formal agreement between Welcome North Resources (VSE) and Placer Dome (TSE) provides for further exploration of the Kona massive sulphide property north of Watson Lake, Y.T. Welcome North farmed out an interest in the project to Placer in 1990, and the recently executed formal agreement has the major preparing for its second year of exploration.
During the 1990 field season, Placer Dome completed an airborne geophysical survey and added an additional 184 claims to the Kona property by staking. To date, only the northern 1.5 km of a 6-km-long target zone has been explored by mapping, prospecting and geophysical and geochemical surveys.
Within this explored portion of the zone, 40 shallow drill holes by a previous operator tested a 100×500-metre area where a flat-lying deposit (measuring 4-15 metres in thickness) is estimated to contain a preliminary reserve of 1.5 million tons grading 1% copper, 1% zinc, 0.15 oz. silver and 0.02 oz. gold per ton.
The 1991 program will include ground geophysical and geochemical surveys to define drill targets along the southern strike extension. The property is accessible by air and is in moderate terrain midway between Watson Lake and Ross River.
Placer Dome can earn a 60% interest in the property by staged payments totalling $145,000 and exploration expenditures totalling $3 million over three years. At this stage, Placer can earn an additional 10% interest. Welcome North can then elect to contribute to a joint venture, or convert its interest to a 5% net smelter return.
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