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Drake Resources forms JV with Panoramic Resources for copper exploration in Norway

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Drake Resources (ASX: DRK) has has formed a new joint venture with Panoramic Resources (ASX: PAN), taking up an extensive landholding in the copper zinc mining districts of Sulitjelma in Norway.

The landholding consists of 18 claims covering 178 square kilometres  and has had a significant historical copper production of 25 million tonnes of ore containing 1.8% copper, 0.86% zinc, 10 g/t silver, 0.25 grams per tonne (g/t) gold.

No significant exploration has been made in the district for more than 20 years and the company plans to commence a VTEM airborne electromagnetic survey in mid 2012.

The new land holdings represent significant exploration opportunities for copper-rich, massive sulphide deposits. Modern geophysics, combined with detailed geological mapping, will assist in identify areas where this mineralisation may attain economic thicknesses.

Norway has a new Mining Act, strong data sources, and provides very positive government support to explorers like Drake and Panoramic, in what the companies consider to be an under-explored country.

Alliance terms

Panoramic will have first right of refusal on any projects proposed by Drake.

If Panoramic accepts the proposals, each proposal will form a joint venture project and Panoramic has the right to sole-fund exploration by spending A$800,000 to earn a 70% interest in the projects.

Drake can participate in the projects at 30% or 10% or revert to a 2% Net Smelter Return royalty.

The alliance will be for an initial period of three years, but may be extended or terminated by mutual agreement.

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