Kingswood in option deal with Nemiscau

Kingswood Resources (ASE) has signed an agreement with Nemiscau Mines, a subsidiary of Inco (TSE), to earn a 100% interest in a 6-claim property 120 miles north of Matagami, Que.

Surrounded by Kingswood’s property, which covers 6 miles of the Horden Lake-Nemiscau volcanic belt, the Nemicau claims contain a deposit estimated to contain five million tons grading 1.5% copper and 0.4% nickel with gold and silver credits or 2.7 million tons grading 2.31% copper, 0.49% nickel and 0.5 oz. silver per ton.

The deposit is accessible by all-season paved road from Matagami. To earn full interest in the property, Kingswood must produce a positive feasibility study and spend $700,000 on exploration by June, 1997. Kingswood must place the deposit into production by June, 1999.

Exploration will consist of diamond drilling and downhole geophysics to test the down-dip extension of the deposit which lies open in the direction of Kingswood’s ground.

Kingswood has also signed a letter of intent with Noranda (TSE) whereby Kingswood can earn a 100% interest in a group of claims in the Northwest Territories. The claims contain a polymetallic deposit with reserves of 387,000 tons grading 10.4% zinc, 1.4% lead, 1.2% copper 10.87 oz. silver and 0.05 oz. gold per ton.

To earn the interest, Kingswood must spend $2 million on exploration over six years with a commitment of $150,000 in the first year. If Kingswood produces a positive feasibility study, Noranda can back in to earn a 50% interest by making certain payments and expenditures.