Goldpost, Mining Corp. finalize Hislop sale

Situated east of Timmins in Hislop Twp., the 480-acre property hosts a small high-grade gold deposit.

The recent agreement calls for Mining Corp. to purchase the property from Goldpost for $1.6 million. The funds will be used by the latter company to repay Mining Corp for outstanding debts. In addition, Mining Corp. has made a $100,000 cash payment to Goldpost.

In conjunction with the sale transaction, Mining Corp. has agreed to commence production at the Hislop West property.

Plans call for mining of the Gibson West zone above the 250-ft level, which has an indicated tonnage of 9,976 tons grading 0.81 oz gold per ton after allowing for 20% dilution. Drill-indicated reserves to the 400-ft level are 19,230 tons grading 0.59 oz gold.

Goldpost says revenue generated from the Hislop West claims will be used first by Mining Corp. to reimburse itself for mining and milling costs. Thereafter, revenue from gold sales will be shared by Mining Corp. and Goldpost on a 2.5-to-1 basis until Goldpost has received $650,000.

In total, Goldpost expects to net $2.35 million within the next six months from its share of the Hislop West operation. Last year, more than $3 million was spent on exploration at the project, including underground drilling which indicated the gold zone extends to a depth of more than 500 ft.

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