Kenorland Minerals (TSXV: KLD; OTC: KLDCF) is forming a joint venture with Sumitomo Metal Mining Canada for Kenorland's Chicobi gold project. Sumitomo earned a 51% interest by completing $4.9 million in exploration expenses.
The Chicobi property, 30 km northeast of Amos, Que., covers 512.6 sq. km over a 45-km strike length of the Chicobi deformation zone (CDZ). This zone is analogous to other major breaks in the Abitibi, such as the Cadillac-Larder Lake, Casa Berardi, Sunday Lake, and Lower Detour zones. The property hosts potential orogenic gold mineralization.
The next $1.5-million exploration phase will be 100% funded by Sumitomo. This phase of work includes 160 sonic infill drill holes within the Chicobi deformation zone (CDZ). Thereafter, exploration will be funded on a pro rata basis with Kenorland as operator.
The prospect generator recently inked an agreement with another big company - Chile's Antofagasta (LSE: ANTO), which can earn up to a 70% interest in its Tanacross copper-gold project in Alaska.
On news of the Sumitomo JV, Kenorland shares gained 5 ? to a high of 71 ?. The stock has traded in a 52-week range of 63-85 ? and the company has a market cap of $43.7 million.