Vancouver-based American Reserve Mining Corp. (VSE) has sold a 60% interest in its Paymaster gold property at Timmins, Ont., to Placer Dome Inc. (TSE) for $18.2 million.
Placer Dome has also agreed to take over project management and to pay the costs for completion of an underground exploration program and production feasibility report. The cost of the work was not disclosed. The project will be operated as a joint venture with each company contributing proportionally to its interest.
The companies said a feasibility report would consider the use of a mill at the nearby Dome mine to process potential feed from the Paymaster property. The Paymaster headframe is situated about one mile from the Placer Dome’s mill.
The past-producing Paymaster mine operated between 1915 and 1966 producing some 1.2 million oz of gold. American Reserve acquired control of the property earlier this year through an amalgamation with Associated Porcupine Mines.
Deep drilling conducted on the Paymaster property by American Reserve encountered some encouraging results at a vertical depth of 6,175 ft. The focus of that work was aimed at finding additional reserves down to 6,900 ft.
]]>
Be the first to comment on "Placer Dome pays $18 million for 60% interest in Paymaster project"