Once development work as well as equipment and operations modifications are complete, Calgary- based General Minerals Corp. (formerly Northgane Minerals) will prepare for the start of production at its Germansen, B.C., gold project in this year’s final quarter.
Vice-president mining operations Karl H. E. Reicher says the company has received a commitment letter from First Exploration Fund 1986 & Co. whereby the limited partnership intends to commit $500,000 to carry out a program of qualified Canadian mineral exploration on the Germansen project.
The offer is subject to review and approval by the partnership and the regulatory authorities.
Mr Reicher says an initial 30 to 60 day startup period is to be follo wed by undergound production using a heading machine and one 11-hour shift.
In other company news, General Minerals has signed an agreement with Minas de San Lorenzo, whereby the latter company will finance, develop and put its placer mining operation into production in 1987.
General Minerals’ property is on the Cachabi I and II claims situated on the Rio Cachabi river in Ecuador, South America. Mr Reicher says proven/probable reserves to date have been delineated totalling approximately 72,000 troy oz from an area representing less than 8% of the total claim area.
The government of Ecuador has granted Minas de San Lorenzo a development permit. Mr Reicher anticipates production will start next year at the rate of 0.432 million cu m of pay-gravel per year.
General Minerals will be reimbursed for all its prior expenses and will receive 15% of net revenues, says Mr Reicher. Minas de San Lorenzo is currently concluding arranging for the shipment and financing of mining equipment to ensure an early development and production startup, he says.
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