An agreement has been finalized for the development of the Robertson gold property owned by Coral Gold (TSE). Under the agreement, Amax Gold (NYSE) can earn a 70% interest in the property by spending up to US$11.5 million on a 4-phase exploration and development program.
To earn the interest, Amax must complete a bankable feasibility study and arranging project financing.
The initial phase, covering a term of eight months beginning immediately, is budgeted at US$1 million. The program will concentrate on probing for deep sulphides to a depth of at least 2,500 ft., while about US$250,000 will be directed at establishing the near-surface heap leach gold potential.
The Robertson, in Lander Cty., Nev., had operated as a heap leach gold operation, but Coral suspended mining in 1989 due to lower than expected grades, higher stripping ratios and various other problems.
Commitment for the remaining three phases of expenditures will depend on the results of each program. If the programs are successful and Amax goes on to develop the property, Coral Gold has the option to back in for a 40% interest by paying 40% of the development and production financing in excess of US$11.5 million.
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