The owners of the Musselwhite gold property have taken an option on adjacent properties owned by Pangea Goldfields (TSE).
Placer Dome (TSE) and TVX Gold (TSE) can earn up to a 75% interest in Pangea’s Opapimiskan and Karl-Zeemel properties.
A prospect on the Karl-Zeemel property has a preliminary, drill-indicated reserve of 327,000 tonnes at an average grade of 4.6 grams per tonne, over widths of 1.5 to 12 metres. The prospect lies about 10 km southeast along the structural strike of the Musselwhite deposit, which is 130 km north of Pickle Lake, Ont. Musselwhite features measured and indicated reserves of 11 million tonnes grading 9 grams gold per tonne.
The Opapimiskan property, north of Musselwhite, features several gold showings that have been drilled.
The Musselwhite joint venture (Placer Dome 68%; TVX Gold 32%) plans to carry out 4,000 metres of drilling on the two optioned properties, and, under the agreement, can earn a 55% interest by spending $2.5 million on exploration over five years.
The companies can then raise their interest to 70% by performing an additional $7.5 million in exploration and development work, or by providing a bankable feasibility study. An additional 5% could then be bought from Pangea for an unspecified amount.
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