Just got back from a trip to Edmonton and got this:
United Keno Hill Mines Ltd -
Proposed Yukon JV
United Keno Hill Mines Ltd
UKH
Shares issued 10296280
1997-07-22 close $0.61
Wednesday Jul 23 1997
See NDU Resources Ltd (NDU) News Release
Mr Stephen Powell and Mr James Stephen report
United Keno Hill Mines, NDU Resources and Yukon Gold and Mineral
Development Company Inc (YG&M) have entered into letters of intent respecting
(i) the reactivation of United Keno's mines and mill at Elsa, Yukon; and (ii) the
evaluation of the merits of a joint operation between United Keno and NDU
involving a common milling facility and related infrastructure using United Keno's
present facilities at Elsa. In order to do this, YG&M will immediately undertake a
mine study of the base metal massive sulphide Marg deposit held by NDU which
is located to the east of the Elsa properties. The study will include metallurgical
testing, environmental background work, discussions with government and First
Nations, permit applications and other pre-feasibility matters.
Pursuant to the letter of intent with United Keno, YG&M is to, on an interim
basis, do the following:
(i) rehabilitate, restart and operate the mill at Elsa at an initial production rate of
between 300 and 500 tonnes per day with an interim production target of
between 750 and 1,000 tonnes per day, as mining permits; and
(ii) begin mining at the Bellekeno and Silver King mines. To begin mining on the 48
vein at Bellekeno, it will be necessary to drive a ramp to accommodate modern
mining methods.
As part of its commitment to these efforts, YG&M has agreed to arrange for $2
million in financing for United Keno.
YG&M has entered into an arrangement whereby it will acquire a minimum of
600,000 and a maximum of three million flow through shares of NDU for $1.00
each and, upon completion of the maximum subscription, receive warrants to
purchase up to an additional three million NDU flow through shares, also at $1.00
per share, for 18 months.
It is YG&M's intention to complete the scoping study an the Marg deposit in the
next 90 days as a preliminary step to further work on the property. The funds
being provided to NDU will be used, in part, to drive a 550m adit on the property
in order to permit an examination of the deposit during the next 12 months. The
results achieved in the adit will play an important part in the feasibility study
YG&M will conduct on the deposit at that time in conjunction with NDU.
Mr J. Malcolm Slack, chairman of YG&M, believes that the Marg deposit and
the Elsa properties should be jointly served by a new 2,500 to 3,000 tonnes per
day mill ideally located at the Elsa site where it can take advantage of the
infrastructure already in place. This approach could substantially reduce the capital
costs of the Marg deposit, substantially reduce the operating costs at Elsa and
shorten the time involved in permitting the Marg deposit.
United Keno is working with its financial advisers to arrange the additional
financing needed to resume operations at Elsa and finance the same until cash
receipts are adequate for that purpose.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
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