QUEBEC - AGNICO-EAGLE MINES of Toronto and AMERICAN BONANZA GOLD of Vancouver have struck a deal whereby they will jointly explore and develop American Bonanza's Noyon-Northway property and Agnico-Eagle's Vezza property. The properties are located 25 km south of Matagami. The Noyon-Northway claims cover the eastern extension of Agnico-Eagle's Vezza deposit, according to American Bonanza.
Bonanza estimates its claims contain 866,000 oz of gold. The Vezza property is partially developed, and a shaft exists at the site. A rough estimate of contained gold there would be 400,000 oz.
The partners have signed a letter of intent giving Agnico an option to acquire a 70% interest in the Noyon-Northway property by spending $1.7 million on exploration over a three-year period. In return, Agnico will assign a 30% interest in the Vezza property to Bonanza. Bonanza has agreed to fund $160,500 of exploration over the next year and a total of $555,000 over the following two years. Agnico-Eagle can increase its interest by 10% if it funds a feasibility study.
More information about the Noyon-Northway property is available at www.AmericanBonanza.com