Cominco plans drilling for Arizona bet

The company has signed a 20- year lease with NRG Resources (VSE) for 28 claims (525 acres) where NRG currently owns a 60% interest and has leased a further 296 claims (4,700 acres) nearby from other owners. Geological exploration of the combined holding is now at the mapping phase, along with surface sampling and preparation of drill sites for a program later this spring.

Cominco’s lease arrangement with NRG Resources allows it exclusive rights to explore and remove all minerals and ore-bearing materials found on the claims. NRG is to receive yearly rental payments graduating from $5,000 to $25,000 until production begins, at which time a minimum annual royalty payment of $60,000 would be paid. NRG has also retained a 4% net smelter royalty.

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