Toronto-based TVX Gold (TSE) has recently advised High River Gold Mines (TSE) that it intends to shut down the Nor-Acme gold project at Snow Lake, Man., effective June 1. TVX has the option to earn a 50% joint venture interest by placing the property into production. Given current market conditions, however, TVX says it’s unlikely the option will be exercised. The property has been maintained on a care-and-maintenance basis since November, 1989, when a $6-million underground exploration program was completed.
High River President James Clucas said his company expects to regain full operating control of the property soon. The property contains proven, probable and possible reserves of 4.2 million tons grading 0.19 oz. gold per ton representing 800,000 oz. of contained gold. The deposit is open at depth and along strike.
Shares of High River, of which there are nearly 14 million issued and outstanding, have recently traded at 38 cents within a 52-week range of 30 cents-$1.15.
TVX will continue to hold its 35% equity interest in High River.
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