Toronto-based junior Candor Ventures (CND-V) has inked a deal to take a half-interest in the Comtois gold deposit, near Lebel-sur-Quevillon in northwestern Quebec.
To earn its 50%, Candor must fund $3.5 million worth of exploration over four years, with at least $500,000 by the end of 2003. Candor must also cover Maude’s $500,000 option payment to Cameco (CCO-T) by December of 2005.
Maude Lake has already earned a 58% interest in the project from Cameco under an existing deal to acquire the project outright, subject to Cameco’s 2% net smelter return royalty.
Candor has also agreed to subscribe 1 million Maude Lake shares at 12 apiece and half a million warrants at 16 per share. The company also has an option on the 1.4 million Maude shares held by Cameco.
Either company can boost its stake to 75% by completing a feasibility study if the other decides not to fund its share. That company would retain a 25% carried interest.
Comtois is home to an inferred resource of 808,000 tonnes grading 9.6 grams gold per tonne, based on a cutoff grade of 6 grams gold and cut high assays to 30 grams per tonne. The uncut grade was pegged at 20.2 grams per tonne.
The mineralization is found in two deposits, Osborne and Bell. The gold is in pyrite-pyrrhotite-chalcopyrite veinlets and disseminations in mafic-to-felsic volcanic rocks and in feldspar-porphyry dykes that intrude the volcanics.
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