American Reserve closes Paymaster deal with Placer

American Reserve President Carl Zuber says his company has received a cash payment of $18.2 million from the sale, which included the Paymaster gold property and the recently acquired Diepdaume property. The latter was purchased by American Reserve earlier this year from Patrick Sheridan and Diepdaume Mines (VSE).

Placer has taken over as the project manager and will spend a total of $5.25 million on exploration. Following that expenditure, the two companies will share costs on a 60/40 basis to complete the exploration program.

A production feasibility report is to be completed by Placer Dome as part of the joint venture agreement with American Reserve.

The past-producing Paymaster property is reported to host 532,000 tons of proven and probable reserves grading 0.22 oz gold per ton in the No 6 winze area, at a depth of about 6,000 ft below surface.

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