Golden Terrace Resources (TSE) has acquired an option to earn a 50% interest in the DeSantis gold property near Timmins, Ont. The option was acquired from Stan North Mining, a private company controlled by Stan West Mining (TSE). Stan North earned an initial 50% interest in the mine property after spending $2 million on exploration. Canacord Resources (TSE) spent another $3 million to earn a 331/3% stake. Canacord’s interest was subsequently acquired by Stan North.
In the latest development, Stan North has acquired the remaining interest in the property from Noranda Inc. The interest was acquired in exchange for Stan North’s interest in a group of claims in the area. Noranda, however, has the right to re-acquire a 50% interest in the property after reimbursing 100% of the cost of bringing the mine to production at a rate of 1,000 tons per day.
Upon completion of the Noranda deal, Stan North optioned a 50% interest to Golden Terrace. Golden Terrace can earn its interest by spending $2 million on exploration over the next two years. Also, Golden Terrace must pay Stan North $235,000 in option payments.
Work completed by Noranda outlined reserves of 161,359 tons grading 0.239 oz gold per ton. Some of the best results came from the 733 drift. Sampling across a 5-ft width averaged 0.56 oz gold along 190 ft of strike, Golden Terrace says.
The underground workings are accessible via a refurbished shaft. A new headframe and hoist are also operational.
Stan West plans to take Stan North public next year. As part of its divestment plan, Stan West will distribute 1,869,000 Stan North shares to its shareholder as a special dividend.
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