Arista to acquire Kremzar deposit

Arista Resources (VSE) will acquire the Kremzar gold project northwest of Wawa, Ont.

The deposit lies on the northern limb of an anticlinal sequence of metavolcanics. It is stratigraphically above a highly contorted iron formation at the contact between older, intermediate tuffs and younger, mafic volcanic flows.

The project was placed into production in 1988 by Canamax Resources, but closed in late 1990 due to lower than anticipated grades and ongoing development requirements. The mine produced 20,428 oz. in 1990, from 134,927 tonnes, at an average cash cost of US$395 per oz.

Arista believes these reserves can be significantly increased and plans to bring the mine back into production. Towards this end, a new operating plan will be formulated.