Printer Friendly

ECHO BAY SELLS 30 PERCENT INTEREST IN LAMEFOOT PROPERTY NEAR KETTLE RIVER JOINT VENTURE TO CROWN RESOURCES

 ECHO BAY SELLS 30 PERCENT INTEREST IN LAMEFOOT PROPERTY
 NEAR KETTLE RIVER JOINT VENTURE TO CROWN RESOURCES
 EDMONTON, Alberta, Jan. 6 /PRNewswire/ -- Echo Bay Mines Ltd. (AMEX: ECO) announced that it has sold to Crown Resources Corp. (NASDAQ: CRRS) a 30 percent interest in the Lamefoot property near Republic in northeastern Washington State, making Lamefoot a part of the Kettle River joint venture of Echo Bay (70 percent) and Crown (30 percent). Echo Bay is the operator of the joint venture's Kettle River gold mines and mill. Lamefoot is located about three miles from the mill.
 Ore-grade values have been encountered at Lamefoot in widths ranging from 15 to about 150 feet over a strike length of 1,500 feet. Depths vary from surface to about 500 feet. The mineralization is open at depth and along strike to the north and south.
 At year-end 1990, Echo Bay's "other mineralization" account included a total of 267,000 ounces of gold at a grade of 0.194 ounce/ton at Lamefoot. During 1991, Echo Bay carried out a concentrated program of in-fill drilling at 50-foot intervals and additional drilling, particularly along strike to the south, at 100-foot intervals. The 1991 drilling program extended the Lamefoot mineralization approximately 500 feet to the south. Program data are currently being evaluated, and calculation of year-end 1991 reserves and other mineralization is under way. Results are expected to be announced in mid-February.
 The 1992 exploration program includes a planned under-ground ramp into the Lamefoot deposit to confirm surface drilling results.
 The transaction is effective Dec. 31, 1991. Terms include the payment by Crown to Echo Bay of US$2.1 million. The sum includes US$1.0 million as partial repayment of Crown's US$20.7 million indebtedness to Echo Bay at Dec. 31, 1991 under a non-recourse project loan secured by Crown's 30 percent interest in all joint venture assets, and US$1.1 million as Crown's 30 percent reimbursement of Echo Bay's costs to date for acquisition, exploration and development of Lamefoot.
 Crown will also pay Echo Bay a royalty of US$20 per ounce on Crown's share of gold produced from Lamefoot ore.
 In addition, Crown will increase to 65 percent from 50 percent the percentage of its Kettle River net proceeds committed to repaying its indebtedness to Echo Bay under the project loan. Echo Bay has agreed to extend the due date for repayment in full of this loan by Crown to Dec. 31, 1994 from March 31, 1993.
 Both companies will proportionately contribute a total of US$3.4 million in cash to a Kettle River reclamation reserve fund.
 Echo Bay is one of the largest gold producers in North America. The company's shares are traded principally on the Toronto and American stock exchanges and on other major exchanges in North America and Europe.
 -0- 1/6/92
 /CONTACT: Paddy Broughton, 303-592-8048 or Ted Sheldon, 303-592-8049, both of Echo Bay/
 (ECO CRRS) CO: Echo Bay Mines Ltd.; Crown Resources Corp. ST: Colorado, Washington IN: MNG SU:


MC -- DV003 -- 6947 01/06/92 13:30 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 6, 1992
Words:514
Previous Article:THE MINNESOTA BIOTECHNOLOGY ASSOCIATION GETTING MINNESOTA READY FOR BIOTECHNOLOGY
Next Article:NINTENDO GAME DEVELOPER ANNOUNCES CAMPAIGN TO LIMIT TIME KIDS SPEND ON VIDEO GAMES
Topics:


Related Articles
SALE OF INTEREST IN MONTANA GOLD PROJECT
MINING SCHEDULED TO BEGIN AT ECHO BAY'S LAMEFOOT DEPOSIT
ECHO BAY ACQUIRES A MINORITY INTEREST IN TVI PACIFIC AS PART OF A STRATEGIC ALLIANCE IN THE PHILIPPINES
ECHO BAY REACHES AGREEMENT IN PRINCIPLE TO SELL ITS 50 PERCENT SHARE IN KENSINGTON PROJECT
ECHO BAY ANNOUNCES SECOND QUARTER RESULTS
ECHO BAY INCREASES ITS INVESTMENT IN ETRUSCAN ENTERPRISES
Echo Bay Increases Interest in Minefinders Following Second Phase of Drilling
Echo Bay Drills Americomm's Nevada Gold Property
Echo Bay Terminates Exploration Agreement on Americomm's Jessup, Nevada Property

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters