Canyon raises stakes at Briggs

Vancouver — Colorado-based Canyon Resources (CAU-X) has inked a deal with Franco-Nevada Mining (FN-T) to pick up a 2% net smelter royalty (NSR) on the first 175,000 oz. of gold produced from its Briggs mine in California.

In return, Franco-Nevada gets 1.05 million Canyon shares plus a 1% NSR on gold production greater than 175,000 oz. The deal, to take effect April 1, gives the Canadian royalty company a 7.3% stake in the junior producer.

In the second quarter, Canyon posted a net loss of US$1.8 million (or 14 per share), with the Briggs operation contributing 23,180 oz. gold and 5,000 oz. silver.

The heap-leach operation turned out 45,707 oz. gold and 9,400 oz. silver in the first half of 2001, compared with 44,309 oz. gold and 10,000 oz. silver in the year-ago period. Cash costs fell to US$237 from US$267 per equivalent gold ounce.

Sirios spins off diamond subsidiary

Gold and base metal explorer Sirios Resources (SOI-M) is moving its diamond portfolio into a new company called Dios Exploration.

Sirios will transfer to Dios the Scholfield property in Ontario, the Wemindji and 33 Carats properties in Quebec and its Trans-Taiga regional data base for Quebec. In return, Sirios will keep 2.6 million Dios shares and a royalty, half of which can be bought back for $500,000.

The 33 Carats property is a new diamond project where some 1,000 mining claims totalling 505 sq. km are pending. The claims are adjacent to the kimberlite property shared by Ashton Mining and Soquem.

Sirios will distribute to its shareholders 1.9 million Dios shares on a pro rata basis, after which Dios will seek out financing and a public listing.

Meanwhile, Quebec’s Ministry of Natural Resources is granting $320,000 to Sirios so that it can carry out a work program at its 50%-owned Aquilon gold project in the James Bay region.

Quebec pumps cash into Appalaches

The Quebec government is providing a $750,000 cash infusion to junior Appalaches Resources (APP-M) for exporation work in the province.

SIDEX (Societ d’investissement dans la diversification de l’exploration) is privately placing $100,000 with Appalaches. The placement consists of shares priced at 20 each, plus 500,000 warrants exercisable at 23 for six months and 26 for 18 months.

In addition, various levels of the provincial government are granting and privately placing $650,000 with Appalaches. Most of the funds are earmarked for exploration of the B-20 nickel-copper-cobalt property in the Port-Cartier region, west of Sept-les.