Kinross Gold‘s (K-T) option to acquire the Clavos gold property from United Tex-Sol Mines (UTXa-V) expired at the end of 2001.
As a result, UTX’s stake in Clavos returns to 100%. The property is subject to a production royalty payable to Aur Recourses (AUR-T).
Kinross’ option allowed the company to acquire the property based on a gold resource calculation (using at cutoff grade of 7 grams gold per tonne) and the average price of gold for 30 days prior to the exercise of the option. The purchase price is $15 per resource oz. at a gold price less than US$350 per oz. and $25 per resource oz if gold is trading above US$350 per oz.
Drilling of 9,316 metres by the partners in 2000 confirmed earlier intersections of high grade gold mineralization, including a 1999 intersection running an uncut 94.6 grams gold per tonne (32.6 grams cut to 100 grams per tonne) over 9.6 metres. The holes also cut numerous clusters and grains of visible gold in quartz-vein stockwork. The property saw limited activity in 2001.
The property hosts three parallel mineralized structures, including the sediment, contact and DL zones, which are south of the Pipestone fault. At last report, Clavos’ inferred resources were reported as 6.13 million tonnes running 5.2 grams gold.
Roscoe Postle & Associates are currently independently evaluating the 14.5-sq.-km property, about 45 km north of Timmins, Ont.
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