Deak becomes operator at Cheminis mine

A letter of agreement recently signed by Deak Resources (TSE) with Northfield Minerals (ASE) allows it the right to become operator at Northfield’s Cheminis mine near Kirkland Lake, Ont. Deak will also acquire an interest in several other claims held by Northfield.

Deak can earn a 50% interest in the property by mining 300,000 tons of ore within a 2-year period and completing $1.75 million in exploration and development within four years. Deak will also pay Northfield a production royalty of $4.50 per ton from the 300,000-ton mining program. After the initial mining program, Northfield may either continue in a 50-50 joint venture with Deak, or accept a 3% net smelter return (NSR) royalty granting Deak a 100% interest in the property. For three years following acceptance of the 3% NSR, Northfield may participate in a 50-50 joint venture upon paying Deak’s exploration and development costs plus interest. The agreement is subject to director and regulatory approval.

The Cheminis mine has partially developed reserves of 340,000 tons grading 0.14 oz. per ton to the 1,000-ft. level. Mineral inventory below the 1,000-ft. level is 1,344,000 tons at 0.17 oz. per ton. The known mineralized zones appear to have good exploration potential along strike and to depth. Deak is currently dewatering the mine and expects to resume mining operations immediately. Ore will be processed at Deak’s Kerr mill near Virginiatown, Ont.