Vancouver — Picking-up where Rio Tinto (RTP-N) left off, Placer Dome (PDG-T) has inked a deal to earn up to a 70% stake in Nevada Pacific Gold’s (NPG-V) South Carlin project in northeastern Nevada.
Placer can earn an initial 60% interest in the 17-sq.-mile property having paid US$71,000 in cash and by spending US$4.6 million on exploration over a 5-year period. The major can then earn an additional 10% by completing a bankable feasibility study.
“The combination of Placer Dome’s proven technical expertise and financial resources being focused on our South Carlin project,” says Nevada Pacific’s CEO David Hottman, “represents a renewed effort to test the exploration potential of our sizable Carlin trend landholdings.”
Nevada Pacific remains operator during the initial phase of exploration, which will include soil sampling, geophysics and drilling.
So far some US$900,000 has been spent exploring the property. In February, Nevada Pacific and Kennecott, a subsidiary of Rio Tinto, mutually agreed to end their Carlin trend alliance, which began in July 1998. The alliance controlled 18 sq. miles in northeastern Nevada, and included the South Carlin, Tomera Ranch, High Dollar and Dixie Flat properties. Exploration expenditures and underlying property payments were shared 50-50 by the pair. Kennecott had the option to earn up to a 60% interest in any discovery area by meeting certain expenditure requirements.
Nevada Pacific retained all the properties except Dixie Flat, which was brought to the alliance by Kennecott.
Be the first to comment on "Placer eyes South Carlin"