Golden Goose sells nickel project for $3 million

Golden Goose Resources (GGR-V) is selling its Lac Levac nickel project to focus on gold.

Golden Goose has signed an option agreement with a private Quebec exploration company, Nemaska Exploration, which is planning to do an initial public offering before the end of the year.

Nemaska has already paid a non-refundable $150,000 for Lac Levac and has until the end of 2009 to pay the remaining $2.85 million.

Nemaska will pay $2 million in cash and give Golden Goose $850,000 in Nemaska shares at the IPO price. With each share, Golden Goose will also get one warrant that’s exercisable at a 20% premium to the IPO share price over a two-year period and a 2% net smelter returns royalty.

In return Nemaska will receive a nickel project with measured resources of 1.26 million tonnes grading 1.09% nickel and 0.56% copper plus significant amounts of cobalt, palladium and platinum.

Indicated resources are 783,000 tonnes grading 1% nickel and 0.53% copper, plus cobalt, palladium and platinum.

The project also has inferred resources of 1.05 million tonnes grading 0.81% nickel and 0.32% copper.

Lac Levac is located 216 km north of Chibougamau in the James Bay region. It’s about 4km north of a major Hydro-Quebec electrical substation, 35 km east of the Nemiscau airport and near the Route du Nord road.

Nemaska already has other projects in the area. Its main asset is the Lac Arques property.

Golden Goose says it wants to focus on its Magino mine project, 45 km northeast of Wawa, Ont. that produced more than 105,000 oz. gold between 1988 and 1992.

A 43-101 technical report released in May this year estimated that Magino has measured and indicated resources of 2.1 million tonnes grading 6.74 grams gold per tonne for 453,000 oz. gold, plus inferred resources of 5.8 million tonnes grading 6.29 grams gold per tonne for 1.2 million oz. (using a cutoff grade of 3 grams gold per tonne).

Golden Goose shares were up 16% today, or 3.5¢, to 25.5¢ apiece on a trading volume of 29,000 shares.