Greenstone Resources (TSE) has entered into an agreement to acquire a 100% interest in the Millie Mack gold-silver property near Burton, B.C. The property covers a large tonnage low grade gold-silver deposit which is amenable to open pit mining, Greenstone says.
Surface exploration has outlined a flat-lying mineralized shear zone which ranges from 20-100 ft in thickness. Assays average 0.08 oz gold per ton and 4.5 oz silver per ton. Combined lead and zinc assays are 1%.
Work completed by other operators has shown that the grade can be inhanced via a screening process. Also, preliminary metallurgical testing sugg ests good recoveries of gold and silver are available by using conventional milling techniques.
The project was identified by Greenstone’s partner Dragoon Resources (VSE) which has been granted an option to earn a 50% interest in the property. A mine feasibility study will be started immediately, which will include bulk sampling, an evaluation of various mining methods and operating costs. The 9-month study is budgeted at $2.1 million.
Greenstone acquired the option by paying the vendor $500,000 cash and 200,000 common shares from treasury. At $5.50 per share, that translates to about $1.1 million. Greenstone must also achieve a minimum production rate of 1,000 tons per day within four years at which time the vendor has the option to acquire an additional 300,000 Greenstone shares at $6 per share. The vendor also holds a 15% net profits interest.
Dragoon can earn its 50% by paying 55% of all acquisition and development costs.
Be the first to comment on "Greenstone gets 100% of Millie Mack"