Freeport agreement to explore N.W.T.

An agreeement in principle has been reached among Freeport- McMoRan Gold Co., a subsidiary of Freeport-McMoRannex, and Aber Resources and Highwood Resources.

The agreement concerns the Bugow property on the northwest arm of Great Slave Lake, about 75 miles from Yellowknife, N.W.T.

Under the terms of the agreement, Freeport-McMoRan Gold can bring the property to the feasibility stage or spend $7.4 million over the next four years. During this time, Aber and Highwood would receive cash payments totalling $775,000 which, together with the above exploration and development expenditures, will earn Freeport-McMoRan Gold a 51% interest in the leases and claims.

At least $400,000 will be spent by Freeport McMoRan Gold this year on geophysics and diamond drilling. This work is scheduled to start as soon as possible with sufficient fuel and supplies being trucked to the property to complete 10,000 ft of diamond drilling.