U.S. REPORT Inco approves funds for Ester Dome

An American unit of Inco (TSE) has approved a US$1.15-million budget for ongoing work on the Ester Dome property owned by Silverado Mines (VSE).

The property is near Fairbanks, Alaska.

Inco has already spent more than the US$1 million required under the earn-in agreement, but must pay US$2 million to Silverado creditors to become fully vested.

Until the payment, which would make Silverado debt-free, Inco must cover 100% of its costs.

Inco spent about US$1.6 million on the property in 1990 and identified a preliminary reserve of 212,000 tons grading 0.36 oz. per ton on the O’Dea vein structure as well as a large tonnage, low-grade gold target on the Ethel zone.

Inco plans to drill about 20,000 ft. in the program to test for extensions to the O’Dea and Ethel structures as well as follow up targets identified in an airborne magnetic and electromagnetic survey conducted last year.