Toronto-based Sikaman Gold Resources (TSE) has concluded negotiations with Cormine S.E.P. to acquire a 100% interest in the Neuquen and Cerro Mayal gold projects in the province of Neuquen, Argentina.
Under previous agreements, Sikaman’s interests in these projects were 39% and 27%, respectively. Sikaman says the terms of its new agreement with Cormine, a provincially owned corporation which holds mineral rights in the province, were improved as well.
Yearly access fees for both projects were reduced to US$60,000 from US$120,000; the 2-year work obligations were reduced to US$1.95 million from US$4.6 million; and the net smelter royalty to the vendor was fixed at 3% from the previous variable rate of 3-5%.
Sikaman expects to complete a preliminary evaluation of the Neuquen gravels this summer, with the objective of completing a feasibility study within 12-18 months. The initial objective is to delineate a resource of 15-20 million cubic metres, sufficient to support a single dredge capable of processing 5 million cubic metres per year. Production is estimated at about 55,000 oz. annually at a cash operating cost of US$150 per oz. Work this summer at Cerro Mayal will focus on confirmation of alluvial reserves and a separate program to map and sample bedrock gold occurrences.
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