Stealth lures Placer to Toodoggone

Vancouver An option agreement with Stealth Minerals (SML-V) gives Placer Dome (PDG-T, PDG-N) rights to acquire majority interests in various properties held by the junior in the Toodoggone region of northwestern British Columbia.

Stealth controls about 60,000 hectares in the mineral-rich region, including ground adjacent to the Kemess gold-copper mine operated by Northgate Minerals (NGX-T) and properties adjoining the past-producing Lawyers gold-silver mine operated by Cheni Gold Mines in the 1980s. A road to the Toodoggone camp was constructed at that time.

Stealth has divided its land package into 11 claim groups, and plans to explore four of these in the coming year using funds provided by Placer Dome. The agreement calls for Placer to contribute $500,000 to the exploration program, with a further $500,000 provided by Stealth.

Stealth’s land package is considered prospective for bulk-tonnage precious metals deposits and large-scale porphyry-style copper-gold deposits. Recent exploration has defined a number of drill targets, including four at the FogMess property. Three are prospective for bulk-minable gold-silver and copper-gold mineralization, while the fourth is a high-grade gold-silver prospect.

Stealth will initially explore four areas of interest selected in cooperation with Placer. The program will include geological mapping and sampling, geophysics, and at least 2,000 metres of drilling.

After reviewing the exploration data, Placer can select one claim package and earn an initial 51% interest by spending $3 million on exploration over three years. This can be increased to 70% by funding a feasibility study. The gold company can select additional projects in the first year of the option by paying $100,000 for each claim group. It can also earn up to 70% interests in the project areas under the same terms as the first project.