MacMillan Gold (TSE), which owns half of the Mishi Gold property in Ontario, will buy the remaining half from Granges (TSE).
The 566-claim property is in the Mishibishu area, between Wawa and Marathon. It straddles the Mishibishu Lake shear zone and surrounds the Magnacon mine and mill of Muscocho Explorations (TSE) and its partners. Previous exploration defined several areas of gold mineralization with an overall geological reserve, in the Main zone, of 1.4 million tonnes grading 4.26 grams gold per tonne. Of particular interest to the company is a potentially open-pit reserve that had been calculated at 772,000 tonnes grading 3.3 grams gold per tonne. In light of the recent reactivation of the Magnacon gold mill, which is just 1.5 km from the pit site, MacMillan intends to produce a feasibility study focused on this reserve
The deal will see MacMillan pay Granges $225,000 and 600,000 common shares. Certain other debts between the companies will be set off as part of the transaction.
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