The exploration subsidiary of Noranda (NOR-T) is optioning to MSV Resources (MSV-T) up to 100% of its Tortigny copper-zinc property near Chibougamau, Que.
MSV may earn a half interest by spending $500,000 on the copper-zinc deposit and $500,000 on the surrounding claims until Dec. 31, 1999. It can earn the remainder by spending a further $500,000 on the deposit and $500,000 on the other claims by Dec. 31, 2001.
Noranda will be able to reacquire a half interest in the property by either returning half the cash or retaining a net smelter return royalty ranging from 1% to 2%, depending on the tonnage produced.
The deposit holds an estimated 450,000 tonnes grading 2.5% copper, 7% zinc and 0.3% lead, plus 66 grams silver and 0.3 gram gold per tonne.
MSV, as operator, plans to begin definition drilling next year. It is also considering adding a zinc circuit to its copper-gold mill in Chibougamau.
In other news, MSV reports that the feasibility study of its Copper Rand 5000 project in Chibougamau is nearly complete.
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