Skyharbour Resources Ltd (50%) and Bayfield Ventures Corp (50%) are pleased to announce they have signed a letter of agreement with Placer Dome (CLA) Ltd, a subsidiary of Placer Dome Inc., whereby Placer Dome will have the right to earn an interest in the Baird Property located in the Red Lake greenstone belt in Ontario.
Subject to the signing of a binding agreement, Placer Dome can earn a 51% interest in the property by spending $800,000 in exploration on the property over a two-year period, including $400,000 during the first year. $300,000 of the first year commitment is firm. Skyharbour will remain the operator during the earn-in period. The exploration will be carried out with the guidance and assistance of Placer Dome, which operates the high-grade Campbell gold mine in Red Lake. Upon completion of the Placer Dome earn-in, Placer will have 60 days to elect to participate in a 51%/49% joint venture, with Placer Dome as the operator. For a three year period following the formation of the 51%/49% joint venture, Placer Dome will have the right to increase its interest to 65% by electing to complete a feasibility study. Should either party elect not to participate in an approved program following the formation of the joint venture, the interest of the non-participating party will be subject to dilution based on a standard formula. Should either party dilute to a 10% interest, its interest will automatically convert to a 1% (NSR), 0.5% as to Skyharbour and 0.5% as to Bayfield, half of which can be purchased at any time for $1-million.
The Baird Property is located approximately 10 km west-southwest from the producing Campbell (Placer Dome) and the Red Lake (Goldcorp) gold mines. The primary rocks on the property are of the prospective Balmer Assemblage and exhibit structural and alteration systems typical of the Campbell and Red Lake mine areas. Previous drilling on the property, by Skyharbour, has confirmed gold values in a highly prospective geological setting along the north shear on the property within the mafic/ultramafic volcanic units. The property is surrounded by claims owned by Placer Dome, Placer Dome / Claude Resources, and Goldcorp Inc. Of significance in proximity is the Madsen Red Lake Mine, which was a past producer, and is currently owned by Claude Resources. This property lies adjacent to the Baird Property on its south boundary and a major drill program is underway with Placer Dome being the operator.
An exploration and drill program is expected to begin on the Baird Property by mid-March, 2003.
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