With the signing of an amended agreement on the Robertson gold project, Amax Gold (NYSE) will return to the property to begin a 3-phase program. Amax halted work on the northern Nevada property earlier this year after receiving mixed results from shallow drilling and discontinuing a deep drilling program. The company had the right to earn a 70% interest in the project from owner Coral Gold (TSE) by spending US$11.5 million in a 4-phase program.
The new agreement with Coral allows Amax to earn a 60% interest in the property by completing a 3-phase program including a bankable feasibility study.
The first phase of the program is budgeted at a relatively modest US$300,000, and will include detailed geological interpretation of the oxide and near-surface sulphide zones to be followed by further drilling.
The second phase of the program is contingent on the results of phase one.
Should the project proceed to production, the current agreement allows Amax to earn a further 10% interest by arranging Coral’s financing if Coral elects not to provide its 40% of capital costs.
Coral shut down mining at the Robertson property in 1989 after the heap leach operation proved uneconomic.
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