Queenston takes control of Thermal

Queenston Mining (TSE) has signed a letter of intent to purchase 30.5%, or 3.5 million shares, of Thermal Exploration (ASE) at 35 cents per share.

Thermal has a 50% interest in the Williams Creek copper-oxide project near Carmacks, Yukon, where preliminary reserves stand at 11.6 million tons grading 1.08% copper and 0.01 oz. gold per ton.

Western Copper Holdings, 47% owned by Teck (TSE), controls the other half of the joint venture.

Pending a $32-40 million development program, Williams Creek is expected to produce about 25 million lb. copper per year at an operating cost of 60-65 cents per lb. Ore would be processed using the solvent

extraction-electrowinning (SX-EW) heap leach method.

Queenston says Thermal’s 1992 program will include definition drilling on open pit reserves in the main zone, No. 1, and further exploration on 12 other copper-oxide zones.

A feasibility study, including metallurgical testing, environmental data collection and permitting, is expected to be complete by December, 1992. Following the purchase, Queenston will be Thermal’s largest shareholder. It will also have the right to arrange equity and/or debt financings in Thermal for a 24-month period.