With US$830,000 worth of exploration failing to indicate what it considers adequate resources, London-based mining giant Rio Tinto (RTP-N) has decided to withdraw from the Paul Isnard gold project in French Guiana.
Rio could have earned a 40% interest in the project from Guyanor Resources (GRL.B-T) by spending US$2.25 million over four years. The major had the option to boost its stake by another 30% for US$6.7 million in expenditures.
The recent exploration program was funded by Guyanor via a loan from parent company Golden Star Resources (GSC-T). Golden Star, in turn, used proceeds from the private placement of 500,000 unregistered shares, at $2 per share, to Rio.
The property is situated in the northwestern corner of the country, and contains a preliminary resource of 6.2 million tonnes grading 2.8 grams gold per tonne.
Guyanor says it is in talks with several senior mining companies concerning a possible exploration joint venture on the project.
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