White Plains Resources (VSE) has failed to exercise an option to purchase from Sikaman Gold Resources (TSE) a 75% interest in the Gilbert wollastonite property in Nevada. The option deadline was Oct. 1 and no extension has been granted. Earlier this year, White Plains purchased a 25% stake in the property from Sikaman for $400,000 under an agreement requiring the purchaser to pay Sikaman $1.35 million after the project has gone into production as well as a 2 1/2% net smelter royalty.
Wollastonite is used as a reinforcement filler in plastics and resins. It can also be used as a substitute for asbestos which is currently banned in the U.S.
Reverse circulation drilling on the Tonopah district property recently confirmed widespread wollastonite mineralization to a depth of 500 ft. Back in May, Sikaman said it would attempt to establish a minimum of two million tons of material grading more than 50% wollastonite. Preliminary test work indicates that a commercially acceptable product can be produced.
As a result, Sikaman said it intends to continue to develop the project and to reach a production decision as early as possible.
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