Granduc borrows funds for Keystone

Following their recent purchase of share positions in Granduc Mining, associated companies Conwest Exploration and Jascan Resources have agreed to lend Granduc up to $3.5 million. (All three companies trade on the Toronto Stock Exchange.)

Proceeds of the loan will be used to develop the Keystone gold project in Manitoba, thereby enabling Granduc to complete its $10-million earn-in for a half interest. The remaining 50% is owned by Toronto-listed Black Hawk Mining. The joint venture is currently mining the BT deposit by open-pit methods and trucking the ore to the 1,200-tonne-per-day Lynn mill, near Lynn Lake, Man. Open-pit reserves, prior to startup in September, 1993, were estimated at 1.2 million tonnes grading 2.83 grams gold per tonne.

Additional reserves are available in the area and milling capacity may be expanded to 1,800 from 1,500 tonnes per day.

Conwest currently owns 2 million shares of Granduc while Jascan holds 815,330 shares.