A formal agreement has been completed by Kimex Resources (ME) and Wabigoon Resources (COATS) which gives Kimex the option to earn a 50% interest in Wabigoon’s Hunter gold property in Whitney Twp., near Timmins, Ont. Subject to regulatory approval, Kimex can earn its interest by spending $3 million on exploration over a 2-year period. The 240-acre property hosts a small past-producing gold mine which was developed in the late 1930s by a shaft to 700 ft. and workings on six levels. Other infrastructure on the property includes a headframe, hoist, core- analysis lab, offices, workshop and 1,500 Kva generating station.
According to Kimex, the mine still has an estimated 1.64 million tons of gold-bearing material above the 600-ft level. Previous drilling outlined one zone measuring 1,450 ft. long and 5-9 ft. wide with an average grade of 0.238 oz. gold per ton.
Kimex said it will attempt to define at least 300,000 tons of reserves grading 0.25 oz. gold which would be sufficient to support a 200-ton-per-day mining operation. Milling would be done on a custom basis using facilities in the Timmins area, the company said.
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