Bitech Energy Resources and Greenstone Resources have signed a letter of agreement whereby Bitech can earn half of Greenstone’s undivided 75% interest in the Tache property located in McKenzie Twp. in Quebec’s Chibougamau mining district.
The agreement provides for an initial payment of $10,000, which has been paid, plus a further payment of $100,000 no later than April 27 of this year.
Bitech will earn its interest at the earlier of (a) expenditure of up to $1.5 million on the exploration and development of the Tache property within three years, or (b) receipt of a positive feasibility study for the Tache property.
Bitech will be the operator of the exploration and development activities and any future production program. The level of Bitech’s required expenditures depends on Greenstone’s interest in the Tache property. The agreement is subject to regulatory approval.
The Tache property contains an estimated 927,000 tons of reserves grading 4.12% zinc and .069 oz gold per ton with the potential to expand the reserves at depth and on strike. The reserves are mineable by open pit.
A production decision may be possible by the second quarter of 1988.
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