Green light for tailings project

An arbitration tribunal has ruled in favor of Goldstake Explorations (TSE) regarding a joint-venture gold tailings project in South Dakota.

The junior says project partner Homestake Mining (NYSE) has been ordered to secure the necessary permits for, and construct and operate, the tailings processing facility as per the joint-venture agreement.

Goldstake is to receive an immediate US$500,000 payment from Homestake. The junior says that if the permits are not in hand by the end of 1995, Homestake must make an additional US$500,000 payment. If the permits are still not in hand by the end of 1996, Homestake must pay yet another US$500,000. The Whitewood Creek tailings project sits downstream from the long-producing Homestake mine. Estimated reserves are 10.4 million tons grading 0.05 oz. gold per ton. Envisaged is a facility capable of treating 6,000 tons per day. The joint venture is owned 50% by Homestake, 40% by Goldstake and 10% by Strawberry Hill Mining.