TVX completes purchase of Greek mining assets

A subsidiary of TVX Gold (TSE) has acquired the Kassandra Mines concessions in Greece.

TVX made an initial payment of US$19.5 million and will pay an additional US$28 million in instalments over five years.

Situated in northeastern Greece, the concessions comprise 314 sq. km, including: the Olympias and Stratoni deposits; three producing mines; a base metal mill capable of processing 3,000 tonnes per day; and a port facility on the Aegean Sea.

TVX is expected to receive grants from the Greek government to the tune of US$69 million, which will cover 35% of capital expenditures.

Plans also call for construction of a gold recovery plant.

The Olympias and Stratoni lead-silver-zinc deposits have been mined for the past 30 years. Current reserves stand at 14 million tonnes averaging 6.3 grams gold and 100 grams silver per tonne, as well as 3.6% lead and 4.8% zinc.

There is also a stockpile of refractory arsenopyrite-pyrite ore, totalling more than 200,000 tonnes of 22.65 grams gold.