June 16 - FNX.TSE / N.TSE - Inco / Fort Knox Labrador Exploration Alliance
Fort Knox Gold Resources Inc. (FNX - TSE) today announced that the Company
and Inco Limited (Inco) have reached agreement in principle to enter into a
strategic alliance agreement in Labrador ("Nexsal Agreement") to explore for
Voisey's Bay type nickel-copper-cobalt deposits. The Nexsal Agreement is
subject to the execution of a definitive agreement by both parties and
obtaining certain regulatory approvals.
The Nexsal Agreement will cover all of Labrador except for those areas held
by Inco Limited or its subsidiaries. The parties intend to concentrate on
mafic intrusive rocks similar to those that host the Voisey's Bay deposits.
A.T. MacGibbon, President of Fort Knox Gold Resources Inc., said, "The
Company is very fortunate to be exploring for nickel in Labrador with Inco
and is in the unique position of benefiting from Inco's vast nickel
technology and knowledge."
He added, "The timing for the Nexsal Agreement is excellent. In view of the
current market conditions, many junior companies holding land in Labrador are
not actively exploring their land holdings and are either dropping their
properties or are seeking to sell or option them to third parties. Over the
past few years, many companies have completed high quality geophysical,
geochemical and geological surveys and much of this data can now be obtained
from government or industry files."
The strategic alliance part of the Nexsal Agreement will consist of data
compilation and regional reconnaissance surveys designed to select highly
prospective lands for acquisition. The strategic alliance will have a
three-year term and be equally funded by both parties. The strategic alliance
will be jointly managed and the evaluation team will have representatives
from the Company and Inco. Inco will be the operator and conduct the data
compilations and the fieldwork.
Fort Knox and Inco will form joint ventures on any properties acquired under
the terms of the Nexsal Agreement. Inco will be the operator and conduct
exploration on the acquired properties. Funding for the exploration on the
acquired properties will be in addition to the strategic alliance budgets.
Fort Knox will fund the first $3,000,000 of exploration on the acquired
properties and earn 100 per cent of any acquired interest. Inco will have the
right to fund the next $10,000,000 to earn 51 per cent of Fort Knox's
interest, leaving Fort Knox with a 49 per cent interest. Subsequent
expenditures will be funded pro rata by both parties.
Inco has initiated a detailed compilation of data and the evaluation team has
started to review a number of properties that are available for option or
purchase. The acquisition phase will commence immediately and fieldwork is
expected to start when the summer field season begins.
With regard to the Company's Canwell, Fish Lake and Rainy nickel projects in
Alaska, field crews and equipment were mobilized to the projects on June 14.
Following a four-week geophysical and geological program, diamond drilling
will be conducted to follow-up on last year's positive results and on new,
high priority geophysical anomalies.
For further information, please contact A.T. MacGibbon, President at (416)
350-2172 or John Gracie (416)487-5649 |
