National deals Salamandra

Vancouver — Juniors National Gold (NGT-V) and Alamos Minerals (AAS-V) have entered into a joint-venture agreement regarding the Salamandra property in Mexico’s Sonora state.

Alamos can earn a half-interest in the advanced project by spending $2.4 million over the next 12 months. National Gold will receive payment of $2 million should the property enter production.

The Albert Matter-led junior acquired Salamandra late last year from Placer Dome (PDG-T) and Kennecott Minerals in a $10.5-million deal. Kennecott is a subsidiary of Rio Tinto (RTP-N).

The joint venture replaces an earlier proposal to merge the two juniors.

Situated 400 km south of Tucson, Ariz., the property hosts the 3.4-million-oz. Mulatos gold deposit. Since 1993, Placer and Kennecott have spent more than $50 million exploring the 151-sq.-km property. A 1997 feasibility study pegged the measured and indicated resource at 68.3 million tonnes grading 1.57 grams gold per tonne using a cutoff grade of 0.8 gram. Included in this figure is a higher-grade core of 11.5 million tonnes grading 3.2 grams gold.

A subsequent feasibility study envisioned a 17,500-tonne-per-day open-pit, heap-leach operation, with capital costs pegged at US$120 million. The gold recovery rate is 66%.

Mineralization is hosted in a large, high-sulphidation gold system that is stratabound in felsic volcaniclastics and porphyritic flows.

Alamos will begin drilling the property immediately.