Iqaluit (Apr 26/04) - Kennecott Canada Resources and Twin Mining have agreed to explore their Jackson Inlet property on the Brodeur Peninsula of Baffin Island.

Kennecott will earn a 56 per cent interest in the property by spending $10 million and completing a representative bulk sample within four years.

"It's a binding letter of agreement to explore with the option for a joint venture," said Roswitha Derbuch, investor relations manager with Twin Mining.

Kennecott may earn up to 71 per cent of the property by funding all joint venture costs and completing a feasibility study within seven years.

"We are extremely happy. Kennecott is working up North and are part owners of Diavik. They know the area and how to get to the diamonds if they are in there," said Derbuch.

Kennecott president John Main, in keeping with company policy, provided no comment on the agreement.