With the legal problems hampering work at the Golden Reward gold project in South Dakota, resolved, partners Coin Lake Gold Mines and Moruya Gold Mines, plan to bring the property to production. The first move is a consolidation of Coin Lake and Moruya, an Australian company, which will give the new firm a 66.66% interest in the Golden Reward Mining Co., the affiliate developing the project.
An economic feasibility study is scheduled for completion later in the year, the partners say. This will be followed by an application for state and county environmental and mining permits.
At the project site, drilling has enabled the partners to calculate a geological reserve of 12.5 million tons grading 0.053 oz gold per ton at a cutoff grade of 0.02 oz. Using a lower cutoff grade of 0.01 oz, the reserves swell to 21 million tons grading 0.037 oz.
The legal dispute which caused delays at the project, was resolved. The sett lement provides for an advance royalty of $150,000(US) to St. Joe American, against a 3% net smelter royalty interest.
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