A letter of intent has been signed between Gold Fields Canadian Mining, a unit of Hanson Natural Resources, and Queenston Mining (TSE) on Queenston’s 100% owned Pandora gold property near Malartic, Que.
Under the agreement, Gold Fields can earn a 50% interest in the first four years by spending $3.25 million on exploration and making cash payments to Queenston of $300,000. Gold Fields has the option to earn an additional 10% interest through expenditures of $750,000 and a payment of $100,000 in year five. Gold Fields has the further option to earn another 10%, or in total a 70% interest by expending an additional $1 million and paying Queenston $100,000 in year six.
Gold Fields will operate the project and can form a joint venture at its election upon earning a 50%, 60% or 70% interest.
The Pandora property consists of 38 patented and unpatented mineral claims in Cadillac Twp., Que. Production from the western portion of the property in 1939-42 was 196,929 tons grading 0.16 oz. gold per ton.
Three gold zones were discovered on the eastern portion of the property in the late 1980s. These zones host preliminary reserves of 2.42 million tons grading 0.13 oz. with a cutoff of 0.08 oz. All zones remain open below 950 ft. and along strike to the west.
Gold Fields will commence exploration on the property this fall.
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