In a share swap agreement, NovaGold Resources (TSE) has gained control of Etruscan Enterprises (VSE). Offering one Novagold share for every 1.2 Etruscan shares, NovaGold acquired 71% of Etruscan and secured control of Etruscan’s two major assets — the Hackett River and Indian Lake properties. Hackett River, a zinc-silver prospect 300 miles northeast of Yellowknife, N.W.T., contains proven and probable reserves totalling more than 16 million tons of what Etruscan describes as “ore-grade material.” Etruscan shares this property with Cominco (TSE), which owns 53.6% and has the right to increase its interest to 60% by spending $1.76 million before Dec. 31, 1999.
Reserves at Hackett River are contained in five separate zones stretching across the 33,000-acre property. At Etruscan’s prime target, the A zone, near-surface massive and vein sulphide limbs contain 6.13 million tons grading 11.2% zinc, 1.24% lead, 0.38% copper 5.54 oz. silver per ton and 0.015 oz. gold. Etruscan has come up with a design for an open pit operation on the western arm of the A zone which would yield 13.8 million tons of material at a stripping ratio of 1-to-1.48.
In the other four zones, combined reserves of about 10 million tons average about 5% zinc. All four zones remain open at depth.
Etruscan also has a 60% interest in the Indian Lake property, another large (11,000-acre) exploration property, northwest of Yellowknife, N.W.T.
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