Cheni completes purchase of Energex claims

The Al claims in the Toodoggone district of north- central British Columbia are now owned 100% by Cheni Gold Mines (TSE) which also owns and operates the nearby Lawyers gold-silver mine.

The Al claims, recently acquired from Energex Minerals (TSE), are reported to contain an estimated 250,000 tons of open pit minable reserves containing about 70,000 oz. of recoverable gold. These reserves will be processed in Cheni’s mill.

Energex is to receive a royalty of $9 on the first 250,000 tons of ore mined and milled, with provision for an additional $1.25 per ton for each US$10 increase in the price of gold above US$400 per oz. Energex will also receive a 3.5% net smelter return on any additional tonnages mined and milled from the property. An advance royalty of $1.15 million was paid at the closing.