MinVen Gold Corp. (TSE), the recently formed offspring of an amalgamation involving Brohm Resources and MFC Financing has agreement to acquire a 33120/30303 1/2% interest in a soon- to-be-producing South Dakota heap leach gold mine.
Scheduled to be in production by mid-1989, the Golden Reward Mining operation could add 20,000 oz to Minven’s annual gold output which is expected to be 77,000 oz this year.
Subject to approval of both shareholders and financial advisers, MinVen will offer 2.9 million shares to a Denver-based venture capital firm called VenturesTrident for its Golden Reward interest.
Located six miles from MinVen Gold’s Gilt Edge mine in Lawrence County, Golden Reward is a joint venture involving Coin Lake Gold Mines (TSE) of Toronto and an Australian company called Moyura Gold Mines.
The project hosts a geological reserve inventory of 20.7 million tons of average 0.044 oz gold per ton which contains 9.4 million tons of grade 0.043 oz proven/probable. The waste to ore stripping ratio is 2.5 to 1.
Current development work is designed to upgrade the geologic reserves into the mineable category and all the major permits are in place, MinVen says.
Exploration and development work is also in progress at MinVen’s wholly-owned Gilt Edge mine where initial production is expected next month. MinVen is financing the program through a private placement of 4 million common shares at $4.60 per share.
A portion of the net proceeds will be used to complete a heap leach pad at the Gilt Edge operation which is expected to produce 11,000 oz gold this year. Production will come from a 6.2 million- ton (grade 0.046 oz gold) oxide deposit.
The company is also attempting to increase the size of the Gilt Edge sulphide deposit where proven reserves stand at 29 million tons grading 0.044 oz gold.
Depending on the success of the current exploration program, capital cost of bringing the sulphide deposit into production are estimated at between $77 million and $140 million(US), said George Ireland, MinVen’s chief financial officer.
He said he is confident that MinVen can prove up an additional 60 million tons before sulphide production begins.
In addition to development at Gilt Edge, MinVen will finance its share of expenses at the Cactus Gold and Stibnite mines, pay down debts and fund potential North American acquisitions from the placement.
When the placement is completed a $6.5 million loan to VenturesTrident is scheduled to be converted to MinVen common shares. As a result, VenturesTrident now holds a 35% stake in MinVen.
Be the first to comment on "MinVen Gold has interest in S. Dakota"