Toronto-based Republic Goldfields (VSE) has entered into a letter of intent to acquire a package of five gold properties in North and South Carolina from Carolina Exploration and Carolina Mines, two private companies.
Republic says all of the properties are within the Carolina slate belt and are amenable to low-cost heap leach mining methods. The most advanced of the group is the Sawyer mine property, where Goldfields Mining and Corona Gold outlined three separate zones estimated to contain 80,000-150,000 oz. gold collectively.
Republic will pay the U.S.-based companies US$200,000 in two equal instalments and up to $1 million of its common shares for the exploration portfolio. Half of the shares will be issued on closing, with the balance payable 12 months later if a minimum minable reserve base is established at the Sawyer mine property.
Final agreements are subject to a 60-day due diligence review and certain approvals.
To confirm and expand upon projected reserves at Sawyer, Republic plans to complete a 20,000-ft. drilling program. The mineralized zone extends for 8,000 ft. along strike.
Thomas Kleeberg, president of Carolina Mines, will join Republic to oversee the exploration and development of the properties.
Mines currently in operation along the Carolina slate belt include the Ridgeway mine of Kennecott and Galactic Resources and the Haile mine of Amax Gold.
Republic recently suspended underground operations at its Congress mine in Arizona, where, as of January, reserves stood at 203,360 tons grading 0.23 oz. per ton.
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