Toronto-based Wheaton River Minerals (TSE) has signed letters of intent to acquire both the Grew Creek deposit and the Ketza River project, which lie within 100 km of each other in the Yukon Territory.
The Grew Creek deposit is estimated to contain preliminary reserves of 773,100 tonnes grading 8.8 grams (0.26 oz.) per tonne at a cutoff grade of 2 grams. After metallurgical tests in the late 1980s, Noranda indicated that the reserves would be amenable to simple cyanide processing with recoveries of 92-94%. Wheaton believes that, with minor modifications, the Ketza River mill could process the Grew Creek ore.
In order to confirm the reserve figures, Wheaton plans to drive a decline into Grew Creek and conduct an underground exploration program this summer. In return for the 350-tonne-per-day mill, mining equipment and 15,000 acres of exploration property at Ketza River, Wheaton has offered to pay owner Canamax Resources (TSE) $400,000, of which $300,000 may be in shares, and a 10% royalty.
Canamax spent about $25 million to bring Ketza River into production. The mine produced 100,003 oz. over a 28-month period before closing in 1990.
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