Two claim blocks north and west of its 169-claim property near Red Lake, Ont., have been acquired by Madsen Gold (TSE). The property holds the past-producing Madsen gold mine.
Madsen bought the 57-claim Aitken-Russet property for 100,000 shares. The vendors will retain a 2% net smelter return royalty up to a value of $2 million.
Also, Madsen has acquired an option to buy four mining leases and four unpatented claims which adjoin the property to the north.
The company now holds title to 10,000 acres in the Red Lake gold camp. The Madsen mine was one of the largest gold producers in the region and currently contains 832,860 tons averaging 0.29 oz. gold per ton. In addition, the mine has a mineral inventory of several hundred thousand tons grading 0.22 oz. and 3-4 million tons of tailings which, based on limited sampling, run between 0.025 and 0.030 oz.
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