CLARIFICATION

A report in our Oct. 28 issue states that St Andrew Goldfields (SAS-T) intends to earn a majority interest in the Timmins gold project of Holmer Gold (HGM-T). In fact, the agreement only covers the property’s known resources.

The agreement calls for St Andrew to prove, by way of a feasibility study, that mining the deposit down to the 100-metre level can generate a minimum net operating profit of $10 per ton. It is also required to spend at least $1 million in predevelopment costs, half of which must be spent in the first year. Holmer is to receive at least $6 per ton of future profits over the mine life.

St Andrew retains a right of first refusal on developing resources below the 100-metre level and would treat at cost the upper-level ore at its Stock mill if its study meets the criteria noted above.