A deal has been signed whereby Radisson Mining Resources (ME) can earn a 50% interest in Breakwater Resources’ (TSE) O’Brien gold property in Cadillac Twp., Que.
Between 1925 and 1956, the mine produced 612,598 oz. of gold from 1.43 million tons of ore. The mine was subsequently closed due to decreasing grades, poor recoveries and rising costs.
In the late 1970s, a new 330- ton-per-day mill was built, the mine was reopened and the upper levels were rehabilitated. After producing 213,400 tons of ore averaging 0.12 oz. gold per ton, the mine was again shut down and allowed to flood. The mill and surface buildings have been kept on a care and maintenance basis since then.
Total reserves in the area of the existing workings are estimated to be 508,200 tons at 0.18 oz. In addition, drilling campaigns undertaken from 1986 to 1989 discovered a new gold zone to the east of the existing workings. Known as Zone 36 East, it contains a mineral inventory of 275,000 tons grading 0.31 oz.
Under the deal, Radisson can earn a 50% interest by spending $3 million on exploration and issuing Breakwater 500,000 class A Radisson shares by Feb. 28, 1999. In addition, Breakwater has an option to purchase 200,000 Radisson shares at 40 cents each.
Breakwater retains ownership of the surface infrastructure, which includes the mill, but Radisson has the option to purchase a 50% interest in these facilities once it has spent its $3 million.
Radisson plans to compile data, perform metallurgical tests on ores stored at surface and carry out a drill program on Zone 36 East.
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