A private share placement will leave Pangea Goldfields (TSE) with $1.4 million to perform a feasibility study on the Fenn-Gib gold project, east of Matheson, Ont.
Prefeasibility work by Kilborn Engineering recommended mining from an underground decline, at an annual production rate of 61,000 oz. The average cash cost would be US$198 per oz.
The study considered only minable reserves above the 300-metre level, which total 3.5 million tonnes grading 4.2 grams gold per tonne. Limited drilling has indicated extensions to mineralization below the cutoff depth.
The placement consists of 771,600 shares eligible for “flow-through” tax benefits, which enable the investor to deduct exploration expenses from income.
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