Glencairn options Yukon gold bet

Toronto-based Glencairn Explorations (TSE) is changing its focus from diamond to gold exploration. Having recently failed to bring a Brazilian diamond project into production, Glencairn has obtained an option to earn 100% of a Yukon property held by Mount Skukum Gold Mining from AGIP Resources and Total Energold Corp. (TSE).

Consisting of 830 claims, the property hosts the former Mount Skukum mine which produced 223,439 tons of grade 0.383 oz. gold per ton (77,000 oz.) from the Cirque deposit 1986-1988.

Under the agreement, Glencairn is paying $400,000 for Mount Skukum, the property and a 300 ton-per-day mill that was built by Total Energold to process ore from the mine. The mill cost $3.6 million to construct.

Glencairn will pay out $50,000 on signing the deal, $300,000 within six months and an additional $50,000 within one year.

The agreement allows Mount Skukum to retain a 1% net smelter return on the first 500,000 tons of processed ore. In lieu of the net smelter return, Mount Skukum has the option to accept 100,000 shares of Glencairn.

However, $7 million spent on exploration since 1986 has outlined several new gold zones, including the Lake zone which hasts 109,000 tons of grade 0.43 oz., plus some potential extensions of the Omni and Goddell Gulch discoveries.

Glencairn plans a major exploration program on the property this summer.

According to Glencairn, which is planning amajor exploration program this summer, the mill is ready to operate and should enhance the economic potential of any new discoveries made on the property.