The proposed sale of Black Cliff Mines’ (TSE) Squaw Creek and O’Donnel River placer gold properties to Menora Resources (ME) was approved recently by regulatory authorities and shareholders of Menora. In consideration for the properties which are located in northwestern British Columbia, Menora has agreed to issue 3.5 million shares to Black Cliff. Valued at $700,000, the shares represent 28% of Menora’s issued and outstanding equity.
The Squaw Creek property has been in production since June 1989 and proceeds from the 1989 operating season added up to $600,000.
Consisting of 22 placer leases, the O’Donnel River property is thought to contain gold-bearing Tertiary gravel deposits which, according to historical records, average as much as 0.1 oz. gold per cu. yd.
Approval has also been obtained for the purchase by Menora of a 82.5% interest in the Carmack placer gold property in California, where geological reserves are estimated at 387,000 cu. yd. of average 0.2 oz. gold per cu. yd.
Elsewhere, Black Cliff has granted Lyon Lake Mines (ME) of Rouyn-Noranda, Que., an option to earn a 50% stake in four Costa Rica gold properties. An affiliate of Rouyn-Noranda-based Audrey Resources (TSE), Lyon Lake can exercise the option through cash payments and by funding exploration on the concessions.
Designated as the first exploration target is the Beta Vargas, an epithermal gold deposit estimated to contain 6.8 million tonnes of grade 1.3 grams (0.038 oz.) gold per ton.
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