Irish exploration company Ennex International has announced a new joint venture agreement with the Canadian mining company, Rio Algom Exploration, and Ivernia West for zinc and lead exploration on its Moate licence block.
It comprises eight prospecting licences in Westmeath, Roscommon and Offaly. The block is held 65 per cent by Ennex's subsidiary, Westland Exploration, and 35 per cent by Minco Ireland. Under the agreement, Rio Algom can earn a 75 per cent interest in the project if it invests $2.5 million in exploration. To earn the interest, $200,000 must be spent in the first year and the balance of the expenditure completed within four years.
Minco's chairman, Mr John Teeling, said his company's interest would be diluted to about 8 per cent if the deal progressed as planned. He added that finding the orebody had proven difficult to date. Exploration work first started there in the 1970s, but new exploration work would mine up to 1,500-1,600 feet deep, compared to 800-900 feet previously.
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