The Dublin Gulch gold project in the Yukon Territory has been relatively inactive for years. But Cornucopia Resources (CNP-T) plans to take control of the project from First Dynasty Mines (FDM-T) and add it to its North American package of assets.
First Dynasty, meanwhile, intends to focus on mineral projects in Armenia and Asia.
The agreement calls for Cornucopia to acquire New Millenium Mining, a wholly owned subsidiary of First Dynasty, in exchange for 45 million of its shares valued at $32 million. Once the transaction is concluded, First Dynasty will hold a 53.9% equity stake in Cornucopia.
New Millenium’s main asset is Dublin Gulch, which contains minable reserves of 50.4 million tonnes grading 0.93 gram gold per tonne, equivalent to 1.5 million oz. It also holds rights to Clear Creek, an adjacent property where several gold targets have been identified.
A feasibility study by Rescan Engineering envisions a seasonal, heap-leach operation capable of producing 135,000 oz. per year at a cash cost of US$221 per oz. Capital costs for a 35,000-tonne-per-day operation are pegged at US$106.7 million, and the stripping ratio is less than 1-to-1.
Cornucopia is an emerging producer, having poured its first gold from the new Mineral Ridge mine in June.
Situated near Tonopah, Nev., Mineral Ridge was built at a cost of US$25.8 million and has minable reserves of 4.7 million tonnes grading 2.41 grams gold per tonne. The wholly owned operation is producing near its design capacity of 50,000 oz. per year. Projected average cash costs are US$237 per oz.
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