Aiming to get its wholly owned Atlanta gold project in Idaho producing by 2006,
Under the deal, Stellar can acquire a 51% interest in the Normar, Malartic H, Malartic H Annex and Mouskor properties by paying $15,000 and funding at least $1.9 million worth of exploration by September 2008. Stellar must also assume annual payments of $25,000 due over the same period under an existing option agreement with
In late 2003, Twin inked a deal to take up to an 80% stake in the 27-sq.-km land package from Breakwater by paying up to $4.3 million, and completing a feasibility study.
As it stands, Twin has a 60% stake in the project, and can grab another 20% by paying $500,000, and completing a feasibility study. Twin can also eliminate Breakwater’s residual 1.5% net smelter return royalty for $1.5 million if the latter does not participate in development of the properties. Under the latest deal, Stellar can exercise these options if Twin fails to do so. Once Stellar earns its stake, the three companies will form a joint venture.
In early 2004, drilling by Twin on the northern portion of the Normar property turned up two new mineralized areas, with values in one zone running up to 5.7 grams gold per tonne over 1.5 metres. The steeply dipping zone measures around 100 metres by 500 metres. Another hole north of the Paquin East zone yielded an uncut 44.7 grams gold over a 0.6-metre interval.
Stellar’s initial exploration efforts will focus on the latter zone. The company also plans a review of all existing exploration results, including digitization of geological units, geochemical and geophysical anomalies and assay results in order to construct a three-dimensional model of the property’s mineralized areas.
Meanwhile, in Idaho, Twin is working to advance the Atlanta project, where anticipated annual production is pegged at 100,000 oz. gold at a cash cost of US$188 per oz. The mine life is estimated at 7-10 years, and capital costs are projected at US$37.9 million.
The proposed open-pit, heap-leach operation is centred on proven and probable reserves totalling 13.6 million tons grading 0.06 oz. gold and 0.16 oz. silver per tonne, or 0.039 oz. gold-equivalent. The waste-to-ore stripping ratio is 3.39:1.
Twin plans to complete a draft environmental impact statement (EIS) for the project later this year.
Earlier this summer, the Idaho Conservation League filed a complaint alleging that a Twin Mining subsidiary violated the Clean Water Act at Atlanta. The claim alleges that Atlanta Gold allowed drainage from a historic underground adit to discharge into Montezuma Creek.
Twin says that since taking over the past-producing property in 1985 it has taken numerous steps to remedy past deficiencies, including upgrading the facilities with the co-operation of the Environmental Protection Agency and the U.S. Forest Service.
Atlanta Gold says it will “vigorously contest” the allegations made by the Idaho Conservation League.
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