TGW picks up Cerro de Maimon

Vancouver — Junior TGW (GWC-V) has inked a deal with Falconbridge (FL-T) to acquire the Cerro de Maimon copper project in the Dominican Republic.

The total price tag comes in at US$850,000 and includes an initial payment of US$350,000, plus two US$250,000 payments due a year after the completion of a feasibility study and a year after production begins, respectively. Falconbridge retains a 2% royalty on the property, of which 1% can be purchase for US$1 million at any time.

In a separate deal, TGW dealt a 50% net profit interest in the project to a private investment group. In return, the US-based group agreed take a $1.1 million private placement in TGW at a price of 40 per share and put $2 million directly into the project. Some $2.25 million of this funding will go towards the completion of a feasibility study.

Located only 10 km from the Pueblo Viejo gold mine property, Cerro de Maimon was discovered by Falconbridge in 1978. The massive sulphide deposit hosts an indicated resource of 3.36 million tonnes grading 3.9% copper, 1.9% zinc, 47.3 grams silver and 0.56 gram gold per tonne, using a 1% copper cut-off. The mineralized body covers an area of 1,000-by-40 metres and has been tested by 102 drill holes.

The deposit also hosts a gold-rich oxide cap, which contains an inferred resource of 323,000 tonnes averaging 3.1 grams gold and 60 grams silver. Mineralization occurs on surface down to a maximum depth of 30 metres.

Surrounding the deposit, TGW holds an additional 10,790 ha of promising ground just east of Falconbridge’s Falcondo nickel mine. Included in TGW’s concessions is the Loma Pesada prospect, which hosts an inferred resource of 1 million tonnes grading 2.2% copper and 0.75% zinc.

The company has launched a full feasibility study aimed at defining options for the development of the project.