Energold forms JV with Treminco

Treminco Resources (TMO-T) is the latest in a growing number of companies that have entered into joint ventures in the Dominican Republic with Vancouver-based Energold Mining (EGD-V).

Treminco intends to acquire the right to a 60% interest in Jade Oil by issuing 200,000 of its shares to Energold and incurring exploration expenditures totalling $1.25 million over four years.

Energold will retain a back-in right to repurchase a 10% interest in Jade Oil from Treminco for a $1.25-Million price tag, with an option to buy back a further 10% by paying an additional $1 million.

Jade Oil owns the Dominican Republic-registered company Minera Monte Plata, which has applied for several exploration concessions in the prospective Los Ranchos formation along the Cordillera Oriental.

Los Ranchos is believed to be a highly prospective volcanic rock formation that extends 112 miles across the country. The formation hosts the Pueblo Viejo deposit, which is estimated to contain sulphide reserves of 120 million tons grading 0.094 oz. gold and 0.6 oz. silver per ton, within a much larger resource of 510 million tons grading 0.062 oz. gold and 0.39 oz. silver.

The oxidized portion of Pueblo Viejo has been mined by open-pit methods since 1975, producing more than 5 million oz. gold and 72 million oz. silver. With the oxidized reserves now virtually exhausted, owner Rosario Dominicana is studying ways to lower costs and improve recoveries of sulphide ore.

Energold’s arrangement with Treminco is similar to joint-Venture agreements it has formed with Impact Minerals (IPT-V) and Double Creek Mining (DCM-V).

Impact can earn a 60% interest in the 3,200-ha Majagual copper-gold porphyry project in the Dominican Republic by spending $1.25 million over four years.

As part of an initial $150,000 program, a 1,000-by-1,400-Metre grid is being established in the area of a 750-by-150-Metre geochemical anomaly first outlined by Energold in 1996. Recent sampling of a 700-Metre-long boulder train and limited outcrop in the area returned values of up to 1.97% copper and 0.034 oz. gold.

Impact can also acquire 100% of the Dominican-registered company Proyectos Mineras. In return, it must issue 100,000 shares to Energold and spend $1.25 million over four years. Energold will retain a 50% back-in right, with an option to buy an additional 10% interest.

Proyectos Mineras has applied for seven exploration concessions totalling 26,642 ha along Los Ranchos.

Double Creek Mining can acquire the Dominican company Inversiones Mineras, which holds exploration licence applications covering a 29,761-ha portion of Los Ranchos.

Double Creek is required to issue 100,000 shares to Energold and spend $1.25 million over four years. Energold retains a back-in right for up to a 60% interest.

Also, Energold has farmed out a 51% interest in a concession, currently under application, to Eldorado Gold (ELD-T). Eldorado will pay Energold $2 million and fully fund exploration costs toward a positive feasibility study.

Eldorado will arrange production financing, which will be repaid with interest, and pay Energold a bonus of US$5 per oz. gold should reserves exceed 2 million oz.

In the meantime, Energold has been drilling the Centenario gold deposit at its Hugo concession in the Dominican Republic. Past drilling led to a resource estimate of 1.2 million tons grading 0.18 oz. gold.

Energold is confident it will double the current resource of 220,000 contained ounces, albeit at a lower grade than previously estimated.