Margaret Kent eyes Carolin gold mine

She’s back.

Together with long-time partner Ross Burns, former Royal Oak Mines CEO, Margaret “Peggy” Kent (formerly Witte) is looking to acquire the past-producing Carolin gold mine, near Hope, B.C.

Although the deal is still subject to a due diligence review and regulatory approvals, Century Mining (CMM-V) has signed an option agreement with Tamerlane Ventures to acquire the underground mine project.

To earn an initial 70% interest from Tamerlane, Century must issue 300,000 shares, pay $75,000, and spend $700,000 on exploration over three years. The junior can boost its interest further through additional payments of cash and shares.

Century must also post a $200,000 environmental bond.

The Carolin mine (previously known as Ladner Creek) produced 45,000 oz. gold from 900,000 tonnes from 1982 to 1984. Production and grades were lower than expected, owing to excessive dilution and poor recoveries in the mill. Previous operator Carolin Mines was also fined numerous times for harmful discharges into nearby Ladner Creek.

Since then, several companies have examined the possibility of re-opening the Carolin mine, which was built at a cost of about $40 million in the early 1980s.

At last report, the mine hosted diluted resources of 1.5 million tonnes grading 0.129 oz. gold per ton. The tailings pond is estimated to contain 660,000 tonnes grading 0.051 oz. gold, which may be recoverable.

Century believes the mine property has the potential to host additional resources near the mine site, and along a 15-km portion of the Coquihalla gold belt covered by the property.

Once the deal closes, the company plans to carry out an aggressive exploration program. Initial work will focus on a 1.2-km-long zone that hosts 12 known targets and gold zones. Previous drilling between the mine and one of the known zones is reported to have intersected 29.5 ft. grading 0.33 oz. gold, and 49 ft. grading 0.15 oz. gold.

Century also intends to update a previous feasibility study and rehabilitate the existing 1,500-tonne-per-day mill.

The mine property is near a paved road, and nearby infrastructure includes power, water, a permitted tailings storage area, and a waste disposal site.