Giant, Pamorex set production date at Nighthawk Lake

Commercial production on the Nighthawk Lake property near Timmins, Ont., will be under way within two years, according to a recent agreement between Giant Yellowknife Mines (TSE) and property owner Pamorex Minerals (TSE). In return for a 67% interest in the property, Giant has agreed to spend $9 million over the next two years bringing the gold deposit to production. If Giant fails to spend at least $4.5 million in the first year, it will not earn any interest. If it spends the first $4.5 million but fails to bring the property to production or spend the remaining $4.5 million, it will lose the right to become operator and its interest will be 30%.

Reserves at Nighthawk Lake are estimated to be 1.59 million tons grading 0.17 oz. gold per ton, for an annual production of 40,000 oz. Giant has agreed to mill the first 610,000 tons of ore at cost in its Pamour mill. Operating profits will be divided according to the parties’ interests.

The agreement is subject to regulatory and corporate approval.