Kinross Gold (K-T) has agreed to pick up a 20% stake in the Duquesne West gold property, 25 km northwest of Rouyn-Noranda, from Globex Mining Enterprises (GMX-T).
Kinross can acquire 1% of Globex’s 50% stake in the property over 4 years by spending $4 million on exploration over four years – increasing from $500,000 during the first year to $1.5 million in the final year. To bring its position to 20%, Kinross must produce a bankable feasibility study.
Also under the deal, Globex’s equal partner will see their half-interest in the property converted to a 0.5% net smelter return royalty. In the end, Kinross would have a 70% stake in Duquesne West.
Between 1994 and 1997 Santa Fe Canadian Mining, a subsidiary of Newmont Mining (NEM-N) sank 26,492 metres of diamond drilling and outlined several gold zones associated with the Porcupine-Destor fault.
Santa Fe’s drilling returned up to 53.5 grams gold per tonne over widths up to 10.7 metres. The company pegged resources at 661,729 tonnes running 10.6 grams gold per tonne. Many of the property’s gold zones remain open.
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