Inco Ltd. (TSE) subsidiary Inco Gold has agreed to become a 50% joint venture partner with Queenston Gold Mines (TSE) at the Upper Canada mine property near Kirkland Lake, Ont.
Under the agreement, Inco Gold can earn its interest by completing a $5-million surface and underground exploration program and paying $300,000 in cash to Queenston.
It also requires Inco to spend $1.5 million on surface exploration in the first 12 months and to make an additional $100,000 cash payment to Queenston upon signing the agreement.
During the next 26 months, Inco is required to spend $3.5 million on underground exploration and pay Queenston $200,000 in cash. Inco gold is also responsible for financing any programs needed to prepare a feasibility study on the property.
Located 10 miles east of Kirland Lake, the Upper Canada mine property produced over 1.5 million oz of gold grading 0.32 oz per ton from 1938 to 1971 when it was closed down due to low gold prices.
The 600-ton-per-day McBean Mill facility still remains on the property.
Be the first to comment on "Inco, Queenston in joint venture at Upper Canada"