Agnico deal with North American

The deal will see Agnico spend up to $7.4 million over a 5-year period. The first two years of the program will consist of diamond drilling. In the following three years, Agnico must conduct an underground exploration program and complete a feasibility study to earn its interest.

Upon Agnico earning its interest in the North American and Dundee properties, Agnico will transfer to Dundee and North American a 36.5% interest in a portion of its land holdings near the Allard River, also in Vezza Twp.

Work by Dundee and North American has outlined a deposit hosting probable and possible reserves of two million tons grading 0.16 oz gold per ton. Drilling by Agnico on its adjoining Allard River claims has returned strong gold values of 0.44 oz across 5.4 ft and 1.3 oz in a 3.3-ft section of core. The Vezza projects are 38 miles north of Agnico’s mine and mill at Joutel.

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