Noranda earning interest in Norite

Exploration funding for the Norite property owned by Consolidated Pine Channel Gold (VSE) has been arranged through a unit of Noranda (TSE).

Pine Channel signed a letter of intent giving Noranda the right to earn a 50% interest in the property by making a $25,000 property payment and funding exploration costs of $1 million over two years.

After making the property payment and completing $125,000 on an initial program, Noranda has the option to fund the balance of $875,000 through private placements in Consolidated Pine Channel.

The Norite property is located in northern Saskatchewan, about 10 km east of the village of Stoney Rapids.

An airborne geophysical survey completed earlier this year identified 40 separate conductors which the company believes may represent zones of massive sulphide mineralization containing copper, nickel and cobalt. A work program, including ground geophysics and sampling, was started up on the property earlier this month.

Dale Hoffman, president of Pine Channel, said he expected to have 8-to-10 drill targets identified for a drilling program in late July.