Fairfield buys back Siwash North royalty

A 10% net proceeds royalty in the Siwash North gold deposit near Merritt, B.C., has been bought back from Placer Dome (TSE).

Fairfield Minerals (TSE) has arranged to buy the interest for $1 million, payable on or before Feb. 15. President John Stollery said the funds will be paid out of working capital, which stands at $2.5 million.

Placer originally acquired the royalty through its participation in early-stage exploration. The re-purchase enables Fairfield to own the deposit outright.

Fairfield completed a 230-ton underground bulk test in 1993 on a representative area, returning an average grade of 2.46 oz. gold per ton. The grade compared favorably with the drill-indicated reserve estimate for the area, which stands at 130,000 tons grading 1.59 oz.

The company plans to concentrate on further test mining, both from underground and from remaining near-surface reserves, in 1994. Gold production from the project during the year is expected to be at least 25,000 oz.