Goldcorp teams with Pele Mountain (July 05, 2004)

Less than two months after De Beers withdrew from the Festival diamond project near Wawa, Ont., Pele Mountain Resources (GEM-V) has found a new partner in Goldcorp (G-T). The two companies have signed preliminary deals to explore not only Pele’s Festival property but the Ardeen gold project, 110 km west of Thunder Bay, Ont.

Goldcorp can earn a half-interest in Festival by spending $2 million by the end of 2006, and an additional 10% by spending another $1 million before 2008.

De Beers had been a partner at Festival only since July 2003. The major was drawn to the Wawa area by its unusual near-surface, volcanic-hosted (that is, non-kimberlitic) diamond deposits, which hold some potential for cheap bulk-mining. But Pele reports that De Beers completed a review of Festival and “concluded that [it] is not interested in the deposit type found to date within the property.”

De Beers’ work confirmed that Festival’s diamonds were derived from a peridotitic mantle within the diamond stability field at depths of at least 250 km, and that they are hosted in volcanic rocks that were deposited on the surface 2.7 billion years ago. The deposits sampled and modelled by De Beers suggest a macro-diamond grade of 10 carats per 100 tonnes or less at a cutoff of 1.5 mm.

For the moment, De Beers remains partnered with Band-Ore Resources (BAN-T), which is also exploring for diamonds in the Wawa camp.

At Pele’s Ardeen gold project, Goldcorp can earn a half-interest by spending $3 million before 2008, and can get another 10% with a further $1.5-million expenditure before 2009.

Ardeen was northern Ontario’s first gold mine, and it produced 30,000 oz. gold and 175,000 oz. silver during the early 1930s.

In recent years, Pele has completed more than 12,000 metres of diamond drilling on the property and outlined gold mineralization in zones near the mine’s existing shaft, which was sunk to the 366-metre level.

Pele and Goldcorp expect to complete the two option agreements by the end of July.

Print


 

Republish this article

Be the first to comment on "Goldcorp teams with Pele Mountain (July 05, 2004)"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close