A development agreement for the Douay West gold deposit, 20 km southwest of Joutel, Que., is expected to lead to production within four years.
Property owner Societe exploration miniere Vior (ME) has struck a deal with Cambior (TSE) whereby the latter may earn a 50% interest in the project by funding the required development work.
The estimated cost of bringing the project to the development stage is $10 million.
In the first phase of development, to begin this month, Cambior will attempt to define reserves by drilling a series of holes.
The second phase will include an underground exploration program, to be completed within 24 months.
The third phase, to consist of preproduction work and the start of commercial production, will have to be completed within 4 years.
Reserves at Douay West stand at 590,000 tonnes grading 9.9 grams gold per tonne (0.29 oz. per ton).
The agreement will allow Cambior to regain its initial investment prior to any profit being split equally between the two companies.
The companies have agreed to transport the ore to Cambior’s Sleeping Giant mill north of Amos, Que.
The major shareholder of Vior, based in Quebec City, is Inco (TSE).
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