In keeping with plans to shift its focus toward North America, Sikaman Gold Resources (TSE) is set to purchase and develop the Sol Wood placer gold mine in California as soon as financing is available.
Slated to produce 29,000 oz. gold from May, 1992, to August, 1993, the Sol Wood project is predicated on three zones hosting about 380,000 cu. yd. grading 0.10-0.25 oz. per cu. yd.
With operating costs estimated at around US$100 per oz., Sikaman is negotiating to raise $145,000 needed to purchase 100% of the project and a further US$400,000 needed to bring it into production.
Sikaman President Arthur Griffis said cash flow from Sol Wood would permit Sikaman to meet its future financial obligations and fund development of the Snow Lake tailings project in Manitoba. Last February Sikaman sold its interest in the Bogosu gold project in Ghana for $8.1 million as part of a strategic plan to focus more on North America.
Initially, production at Sol Wood will come from the main and main north open pit zones which are expected to yield 19,570 oz. from May to December, according to a mine plan. An additional 10,000 oz. could be mined from an underground zone in the summer of 1993.
Sikaman’s evaluation of the property is based on an analysis of three bulk samples, 25 reverse-circulation drill holes and a U.S. Bureau of Mines sampling program as well as a review of previous production statistics. It indicates that additional reserves can be established to the north and south of the known zones. Sikaman’s 12 million issued shares traded recently at 15 cents in a 52-week range of 12-56 cents.
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