Cameco (TSE) will be earning a 60% interest in the Lahoca gold property, 90 km northeast of Budapest, Hungary.
The company will fund a feasibility study, to include a mineral reserve estimate and metallurgical testing. And if the deposit is brought to production, it will pay A$10 million to Rhodes Mining, the Australian company that currently owns the property.
Inferred reserves stand at 16.5 million tonnes grading 2 grams gold per tonne. Rhodes has two mining leases and two exploration licence areas in the vicinity of Lahoca, for a total land holding of 13.7 sq. km. Ten holes drilled in 1995 returned grades ranging from 0.7 to 1.8 grams gold per tonne.
Mineralogical and metallurgical tests suggest the gold occurs as fine-grained inclusions in pyrite and in quartz. Tests indicate that heap leaching would not be successful.
Initial recoveries from flotation milling were around 70%, but these have since been raised to 88%.
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