A 40% interest in the Whitewood Creek tailings project outside of the Black Hills of South Dakota has been put up for sale by Goldstake Explorations (TSE). The company made no mention of the impending sale at its annual meeting in June in Toronto. A press release states the company has received expressions of interest from several major mining companies invited to tender offers for Goldstake’s interest in the project.
An application for a mining permit for the project, with proven reserves of 14 million tons grading 0.052 oz. gold per ton, is expected to be made in the fall of this year.
A feasibility study for the project will be completed prior to the application submission. The company says it expects the permit will be processed by the state by March, 1991.
In April of this year, the company says, the U.S. Environmental Protection Agency issued a “record of decision,” declaring that mining will be allowed, subject to state regulations.
The major partner in the project is Homestake Mining (NYSE), which optioned its 50% interest from Goldstake. Homestake is preparing the feasibility study. Strawberry Hill Mining owns the remaining 10% interest.
A heap leach operation is planned for the tailings, most of which originated from the long-producing Homestake gold mining operation in the area.
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