Easton buys into Zimbabwean mine

Ontario-based junior Easton Minerals (VSE) will acquire a 51% share of the Goodenough gold mine in Zimbabwe.

The property began production at the turn of the century and produced 653,000 grams over the past eight years. Current

production is from the 300-metre level, with grades averaging 6 grams gold per tonne. The mine has an in situ resource of 1.3 million grams (42,000 oz.), with additional potential in untested structures which run parallel to the producing reefs.

The company expects to complete its due diligence shortly, at which point it will pay $1.3 million for the mine and other

assets, including equipment and 600,000 tonnes of tailings. A private placement will be used to fund the acquisition, and

Easton has first right of refusal on the remaining 49% interest.

The junior will spend another $1.3 million to upgrade the

existing facilities. As a result, gold production is expected to triple to about 30,000 grams per month.