The 3,000-metre program will expand on drilling by previous owners. Based on that earlier work, the deposit is estimated to host 37 million tonnes averaging 0.38% copper and 0.032% nickel, plus 1.85 grams silver, 0.21 gram gold, 1.1 grams palladium and 0.27 gram platinum per tonne.
In 1989, a prefeasibility study by BHP Engineering concluded that the deposit was amenable to open-pit mining and conventional milling. Based on an annual production rate of 2 million tonnes, operating costs were pegged at $11 per tonne and smelter revenue at $18 per tonne.
Geomaque will fund the drill program using proceeds from a recent private placement. Just over 3.4 million units were issued at 28 apiece for gross proceeds of $970,000. A unit consists of one flow-through share and half a purchase warrant that can be exercised until mid-2002, at 35.
Funds from a second placement are being held in escrow. This financing saw 892,858 units, which are equivalent to those noted above, issued for gross proceeds of $250,000.
Geomaque can earn a 60% interest in the Marathon project by spending $2.7 million on exploration over four years and paying $1 million in cash to
Be the first to comment on "Geomaque drills Marathon project"