The Talapoosa gold-silver project in Lyon Cty., Nev., is now wholly owned by Athena Gold (VSE) following termination of the company’s joint venture with Pegasus Gold (TSE).
The termination follows the expiry of a 45-day extension on the March 9 deadline for the start of a final feasibility stage.
Athena says Pegasus made several proposals during the 45-day period, involving revisions to the joint-venture agreement and an outright purchase of the company’s interest.
Athena management determined that Pegasus’ proposals were not in the best interests of shareholders and, as a result, opted to retain a 100% interest. Pegasus estimates Talapoosa contains 50.1 million tons grading 0.026 oz. gold and 0.35 oz. silver per ton, based on a 0.01-oz. cutoff.
Much of the resource is unoxidized, and metallurgical work by Pegasus indicates heap-leach recoveries for gold would be in the order of 78% for oxidized material and 60% for sulphide mineralization.
Silver recoveries are projected at 55% for oxides and 50% for sulphides. Athena is now reviewing its options for the property.
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