E.T.C. Options Queenstakes's Chupaca, Ancash Peru Property
October 01, 1997 17:00
VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 1, 1997-- Queenstake Resources(TSE QTR. ) Queenstake Resources Ltd. (QTR-VSE) is pleased to announce that an option to joint venture agreement has been signed with E.T.C. Industries Ltd. (VSE-EIL) on Queenstake's Chupaca, Peru property. Subject to Vancouver Stock Exchange approval, E.T.C. must fund US$1,000,000 to earn a 51 percent interest over a three-year period. The Chupaca property is adjacent to Barrick Gold Corporations's Pierina orebody located in the northern Ancash District, Peru. Pierina is reported to contain proven and probable reserves of 6.5 million ounces gold with projected initial production of 750,000 ounces of gold per year in 1999 at an average cost of $50 per ounce of gold.
E.T.C. may earn a 51 percent interest in Chupaca by completing staged exploration beginning with a commitment to spend US$200,000 on a mapping, sampling and Phase I drilling program, within one year. To complete its earn-in, and provided E.T.C. receives a recommendation to proceed with further work from its geological consultant, E.T.C. shall expend a further US$800,000.
Chupaca is owned 100 percent by Minera IRI Peru, S.A., the Company's wholly owned subsidiary and is subject to a 2 percent Net Smelter Return royalty. E.T.C. is the operator and exploration work is to begin upon receipt of regulatory approval. With regulatory approval, a finders' fee will become payable by E.T.C. on this transaction.
No regulatory authority has either approved or disapproved the information contained herein.
CONTACT: Queenstake Resources Ltd.
James Mancuso, 604/684-1218
FAX: 604/684-9959
doris.meyer@pro.net
or
E.T.C. Industries Ltd.
Gary Musil, 604/683-6648
FAX: 604/683-1350
gmusil@direct.ca |
