OVOCA Resources has reached a joint venture agreement with the Canadian group Paramount Ventures which will see around £2 million spent on exploration of Ovoca's Keel, Co Longford lead zinc and Garrycam barite prospects over the next five years.
To earn a 50 per cent stake in the prospects, Paramount must spend $3 million (£1.9 million) on drilling, a feasibility study and an environmental impact study over the next five years. After that, Paramount and Ovoca will be responsible for their own share of development expenditure.
Previous exploration has established 4.97 million tons of lead zinc ore at Keel with grades of 6.85 per cent zinc and 1.04 per cent lead. Further drilling in 1993 and 1994 "indicates that there is substantial exploration potential to increase the current known reserves", said Ovoca in a statement.
To earn an initial 50 per cent stake in a set of prospecting licences held by Ovoca, Paramount must spend a minimum of £500,000 over a three year period. The group can earn a further 25 per cent stake by spending a further £500,000.
