Situated near Springdale, the project has a resource of 600,000 tonnes grading 15 grams gold per tonne, equivalent to 300,000 contained ounces.
Abiting will pay $3.4 million in cash plus, following production of 70,000 oz. gold, $600,000 at the rate of $10 per oz. Once 200,000 oz. have been produced, Major General will receive $20 per oz. for the life of the mine, provided the price of gold is US$290 or higher. The deal is subject to a 120-day due diligence.
Abiting is controlled by mining engineer Robert Bryce, who estimates it will take 18 months to develop a 300-tonne-per-day underground operation on the property.
In other news, Major General will allow
Last year, volcanogenic massive sulphide-type mineralization was discovered in rhyolitic rocks at Spider Lake. Grab samples assayed up to 7.4% zinc, 1.4% lead and 1.5% copper, plus 101 grams silver and 0.87 gram gold per tonne. A recent induced-polarization survey outlined a 1,200-metre-long chargeability anomaly.
Atna has approved a $30,000 electromagnetic survey to delineate drill targets.
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