Gold producer Placer Dome (TSE) is paying $5 million cash for Homestake Canada’s 25% interest in the Musselwhite gold property, 80 miles north of Pickle Lake, Ont.
Homestake will retain a 5% net proceeds interest in the 25% interest. Exploration on Musselwhite has been ongoing since 1973. At least 12 zones have been delineated and preliminary reserves are 4.67 million tons grading 0.28 oz. gold per ton.
Gold occurs in sulphide-rich zones, within folded iron formation and volcanic rocks.
The acquisition means Placer now has a 68% interest in Musselwhite, with TVX Gold (TSE) holding the remaining 32%. Homestake acquired its interest when it took over International Corona in 1992.
Placer, the operator, is drill-testing several targets on the property. Eleven holes totalling 5,000 metres have been completed.
In December, 1989, development was suspended due to low gold prices and expensive infrastructure and electricity.
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