Morrison Knudsen Forms Mining Group

Morrison Knudsen Corp. said it has formed a subsidiary, MK Gold Co., to conduct all of the company’s mining operations for gold and other precious metals.

William Agee, chairman and chief executive, said the wholly owned unit has entered into a joint-venture agreement with Chevron Resources Co. to explore and develop an 18-square-mile property in southeastern Oregon that has significant potential for gold.

The Chevron Corp. subsidiary has conducted exploration of the property and confirmed the presence of a gold-bearing system. MK Gold will take part in detailed exploration activities to earn a 40% interest in the property, Agee said.

The joint-venture team will complete exploration and move toward development after Morrison Knudsen completes a mine feasibility study, he said.