Aurizon to gain stake in Blackdome

Gold producer Aurizon Mines (TSE) can earn up to a 55% interest in the Blackdome gold mine property near Clinton, B.C.

The underground mine operated from May, 1986, to January, 1991, during which time it produced 225,000 oz. gold and 550,000 oz. silver from 370,000 tons of ore. The property includes a 220-ton-per-day mill, as well as miscellaneous heavy equipment.

In return for a 50% interest, Aurizon will pay $450,000 to Claimstaker Resources (VSE) by July 15, 1996, as well as spend slightly more than $2 million by July 15, 1997. If the property is brought into production by April 30, 1997, at Aurizon’s expense, the company will receive an additional 5% interest.

To maintain its option, Aurizon must spend at least $500,000 by the end of the year.

Drilling, drifting, raising and surface trenching will get under way in August in an effort to outline minable reserves.

At last report, the Blackdome contained 80,000 tons grading 0.45 oz. gold per ton.