Dolphin selling quarter interest in Nfld. project

Newfoundland-based Ardonex has agreed in principle to pay $5.6 million for the 25% interest.

Under the agreement, Ardonex will be allowed to appoint two representatives to Dolphin’s current 5-member board of directors. The private firm will be allowed a third representative on the board following a board expansion to eight members.

Dolphin’s major shareholder is Toronto-based Corona Corp.

Dolphin is spending $4 million on exploration work this year at the Cape Ray project. The company says diluted potentially mineable reserves of 362,000 tons grading 0.315 oz gold per ton have been delineated to date. Additional reserves of 105,000 tons grading 0.252 oz are indicated.

A feasibility study for the project is planned this year. Contract miners are on site to begin test mining, and the company has made application for government funding for infrastructure support.

Dolphin reports it has purchased an existing 4.5% net smelter return royalty from Rio Algom Exploration.

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