Maximus to mount Larder Lake effort (December 12, 2005)

NFX Gold (NFX-V, NFXGF-O) has dealt an option to earn a 60% interest in its Larder Lake, Ont., gold properties to Maximus Ventures (MXV-V, MXVEF-O). The deal allows Maximus to earn its interest by funding a total of $6 million in exploration over three years, and also gives Maximus a warrant position in NFX.

The agreement covers three wholly owned NFX properties, Cheminis, Bear Lake and Fernland. It also covers the Barber Larder property, where NFX owns a 75% interest and a private company the rest.

Maximus’s work obligations start with $220,000 to be spent by year-end, followed by $480,000 by the end of July and another $500,000 by the end of 2006. To earn its interest, Maximus must then fund $2 million in 2007 and $2.8 million in 2008.

Maximus gets 1.5 million warrants exercisable at 20 during 2006, another 2.5 million exercisable at 20 during 2007, and a third set of 4 million exercisable at 30 up to the end of 2008. Maximus is required to exercise the warrants if the price of NFX shares is more than double the exercise price for 60 business days. If Maximus drops its option the warrants expire immediately.

The properties, near the Kerr Addison gold mine, have seen little exploration since 1999, although four short holes were drilled in 2003. Cheminis has produced about 260,000 oz. gold, mostly in the early 1990s; it has a 330-metre shaft. A 1998 resource estimate on Cheminis, predating National Instrument 43-101, put the measured and indicated resource there at 1.5 million tonnes grading 6 grams gold per tonne, and an additional inferred resource at 840,000 tonnes grading 6.5 grams per tonne.