GeoNova buys Bachelor Lake

Montreal-based GeoNova Explorations (GNE-M) has signed a preliminary agreement to buy the Bachelor Lake gold mine and mill facilities for $5.6 million in cash and debt plus 3 million GeoNova shares.

Situated in Quebec’s Lesueur Twp., 220 km northeast of Val d’Or, the project consists of 19 claims and one mining concession that hosts a 500-ton per day mill and a licensed tailings pond.

Measured and indicated resources stand at 523,075 tons grading 0.233 oz. gold per ton; inferred resources, at 595,000 tons grading 0.24 oz. gold.

GeoNova also owns the Discover gold project, 124 km to the southwest, and is considering having future ore from that deposit sent to the Discovery mill.

Exploration crews at Discovery have identified resources of 2.3 million tons grading 0.149 oz. gold, including 1.4 million tons at 0.2 oz. gold.

GeoNova has also bought the remaining half-interest in the Hebecourt-Magusi property in northwestern Quebec from its former joint-venture partner, Sikaman Gold (SKG-T), which is getting out of the mineral exploration business in favour of on-line retailing. As a result, GeoNova now owns the property outright.

Previously mined by Noranda (NOR-T), Hebecourt-Magusi has a resource of about 1.1 million tonnes grading 2.8% copper. In addition, a zinc deposit on the property contains an estimated 1 million tonnes grading 6.9% zinc.