Shareholders of High River Gold Mines (TSE) have approved a 50-50 joint venture with TVX Gold (TSE), which will lead to development of the Snow Lake gold project in northern Manitoba.
The project consists of three properties: Snow Lake, Dunlop and a 17-claim package optioned from Hudson Bay Mining & Smelting (TSE). Reserves on Dunlop are about 819,000 tons grading 0.268 oz. per ton, while reserves at Snow Lake (formerly the Nor-Acme mine) are estimated at 4.2 million tons grading 0.19 oz.
TVX acquired a half interest in the Snow Lake project in return for canceling 6 million High River shares which it owned. TVX has also agreed to arrange financing for and develop a gold mine on the property.
The 575,164 warrants, held by TVX, to acquire common shares in High River will no longer be exercisable.
Under the agreement, production of 100,000 oz. per year must occur no later than February 15, 1996; the anticipated startup is late 1995. Engineering work is advanced, with dewatering of the existing workings and preliminary construction already under way.
High River is also active in Burkina Faso, West Africa, where it is exploring a 500-sq.-mile concession for gold.
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