To acquire the property, privately held Dasserat must make option payments totalling $21,000, issue 800,000 shares, and spend at least $4 million on the property over four years.
Globex retains a 2% royalty on all gold sold for less than US$330 per oz., increasing to 3% at realized prices exceeding US$330 per oz. Globex also has a 2.5% royalty on all other metals recovered. In addition, Globex will receive the greater of a 5% gross profit interest or 5% net metal royalty on metal extracted from any bulk sample collected by Dasserat.
If startup does not occur by the end of 2007, Dasserat must pay Globex an advance net metal royalty of $30,000 per year.
Globex acquired the property last May. A feasibility study in 1984 pegged resources at 1.1 million tons grading 0.247 oz. per ton. Of that amount, 62,365 tons grading 0.16 oz. are classified as proven; another 370,507 tons carrying 0.2 oz. are in the probable category. A geologic resource totalling 200,000 tons is indicated in the Talus Vein. Gold recovery rates are pegged at 95%.
The resource figure is based on 70,000 ft. of surface diamond drilling, underground drilling, underground channel sampling, and bulk sampling. Globex says the estimate may not be in line with Canadian standards under National Instrument 43-101.
Gold mineralization at Russian Kid is accessible via drifts, raises, and an existing ramp with a vertical depth of 425 ft.
The deposit comprises a series of narrow quartz-pyrite veins. The zone has been traced along some 4,000 ft. of strike length and to a maximum depth of 1,600 ft.
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