MinVen completes S. Dakota acquisition

The Golden Reward, a heap leach gold project currently in the advanced stages of development, is scheduled to commence production in June at a planned rate of about 60,000 oz gold per year. Mine operating costs are expected to be around $204(US) per oz, the company says.

MinVen acquired its one-third interest in the Golden Reward project in late December from a Denver-based venture capital firm called VenturesTrident. Consideration for the transaction was 2.9 million common shares of MinVen.

The remaining interests in the Golden Reward project are held by Toronto-based Coin Lake Gold Mines (TSE), and an Australian- based firm called Moruya Gold Mines (ASE). These companies are currently negotiating to determine the most cost effective and tax effective method of amalgamating their combined two-third interest in the Golden Reward.

A consolidation of interests held by Moruya and Coin Lake could eventually see the latter company emerge as the operating entity for the Golden Reward mine. Under the current arrangement, a non- corporate entity, called the Golden Reward Mining Company, is serving as joint venture manager with its central office in the town of Lead, S.D., about two miles from the mine site.

Developing the Golden Reward project has not been an easy task for the joint venture partners, which have had to deal with regulatory bodies in three separate countries: Canada, Australia and the U.S.A. The partners have faced a series of legal and environmental roadblocks along the way, also.

A $17-million(US) gold loan, provided by Mocatta Metals Corp., was completed this month, and proceeds of the loan will finalize the capital requirements for the Golden Reward mine.

In addition to the Golden Reward, MinVen has interests in four other mines. These interests include the Cactus gold mine, (a California heap leach operation), the Stibnite, Gilt Edge, and Blackdome mines.

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