Partners Cache Explorations (ME) and MSV Resources (TSE) can acquire the Inner Block property, currently owned 70% by Corner Bay Minerals (TSE) and 30% by Quebec Crown corporation Societe Quebecoise d’Exploration Miniere.
The 16-claim property is situated near Chibougamau, Que., some 55 km south of MSV’s mining installations. To date, the property has undergone 30,000 metres of drilling.
The deposit consists of a sub-vertical lens with diluted reserves, in all categories, of more than 960,000 tonnes averaging 5.28% copper. In addition, a second lens, parallel to the first, has been identified by drilling. Three holes intersected this zone and averaged 9.6% copper over 2.4 metres, 9.4% copper over 0.15 metres and 11.4% copper over 1.8 metres. Both lenses remain open at depth and the second is also open along strike. Cache and MSV must bring the property into production within 36 months (subject to certain conditions), which would enable MSV to earn a 55% interest and Cache, 45%. In addition, the companies must pay a sliding-scale royalty ranging from 1 cents to 3 cents per lb. of copper produced. The minimum royalty payment is set at $200,000 annually.
In other news, Dragon Gem has completed a surface program on Corner Bay’s Las Vigas gold property in Mexico’s Chihuahua state. Dragon is earning a half interest by spending $1 million, with mapping and sampling having already identified a significant zone of copper oxide mineralization. Dragon Gem will fund a drill program, to be managed by Corner Bay, starting this fall.
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