The exploration arm of Noranda (NOR-T) has signed a deal with Southern Africa Minerals (SAF-T) to earn a 55% interest in the Caber base metal property, situated near Matagami, Que.
For its interest, Noranda Mining and Exploration must spend $6 million, as well as subscribe for at least $2.85-million worth of Southern Africa shares, over four years. The major can earn an additional 15% by providing production financing.
Copper and zinc mineralization were discovered on the property in 1997.
Drilling hit 3.3% copper over 6.6 metres and 7.95% zinc over 9.3 metres in the Caber North zone, which remains open at depth.
Resources at the Caber deposit, based on drilling conducted in 1994 and 1995, stand at 1.3 million tonnes grading 1.3% copper and 5.54% zinc, plus 10.2 grams silver and 0.26 gram gold per tonne.
Diamond drilling is set to commence, and a $1-million exploration program is scheduled to be completed by March 1999.
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