Kennecott Exploration Company and its affiliate companies are members of the
Rio Tinto group of companies. Rio Tinto is a leader in the international mining
industry, helping to meet the growing global need for minerals and metals.
Kennecott Exploration Company
Now a division of RTZ, Kennecott still maintains active exploration offices in Hermosillo and Guadalajara. It operates in Mexico through Minera Kennecott S.A. de C.V. Although connected with US Borax, they conduct their own exploration in the US and in Mexico.
Mulatos Au Deposit, Sonora. They were the minority JV partners (30/70) with Placer Dome on the OP/HL Au deposit (resource) of more than 3,500,000 ounces out by Yecora that was initially expected to go into production in 1998. Kennecott never was big on press releases. They vended 100% this to National Gold Corporation on December 27, 2000 to get their piece of a joint $50 million tax loss between Kennecott and Placer. National refers to it as their "Salamadra Project".
Randol Mexico Mining '97 Exhibitor
Faja de Plata area of central Mexico Kennecott Exploration Company and Western Copper have terminated their Strategic Alliance in the ("Termination Agreement") effective May 5, 1999. Under the terms of the agreement, Kennecott surrendered its back-in rights on seven wholly owned Western properties (560,000 hectares or 1.38 million acres) and the requirement for Western to spend US$4.0 million on the properties over the next four years, in return for: 250,000 shares of Western common stock. Re-pricing of 250,000 share purchase warrants, so that each warrant may be exercised at anytime prior to March 12, 2001 at a price of $2.00 per share. A payment of US$50,000, due on or before August 1, 1999. Kennecott retains an uncapped royalty varying from 1% - 2% on all properties except Villa de Ramos, where the royalty may be purchased by Western under the following terms: a) One million U.S. dollars (US$1,000,000) per percentage point at any time on or before the second anniversary of the Termination Agreement or; b) Two million U.S. dollars (US$2,000,000) per percentage point at any time after the second anniversary, but before the third anniversary of the Termination Agreement; c) If any portion of the royalty is not purchased prior to the third anniversary of the Termination Agreement, Kennecott's right to receive a net smelter return royalty shall remain in full force and effect.
WTC Press Release 02-99 6May99
Tayahua, Concepcion del Oro District, Zacatecas. Represented a potential 140 million investment into a JV company proposed as Kennecott Tayahua in order to operate a zoned Cu-Pb-Zn-Ag-Au skarn orebody hosted in carbonates adjacent to a quartz monzonite intrusion. Proven reserves are 7.5 M tonnes of Pb-Zn-Ag ore at over 8% combined Pb+Zn plus 120 gpt Ag. Also proven are 38.4 M tonnes of Cu ore at 1.26% Cu plus 0.4 gpt Au. Resources in the area are estimated to exceed 150 M tonnes. Ramping Cu ore production from 2,000 to 3,300 tpd in 119 and 5,000 tpd in 1998. Pb-Zn-Ag ore will remain at the present level of 1,500 tpd. Evidently this deal was vetoed by RTZ at some stratospheric corporate level.
Chirimoyo, Durango. A 13,600 ha claim group in its third year of option from Consolidated Viscount Resources. Kennecott has made a decision to drill certain targets in the near future.
CSW 16May97 (Cons. Viscount)