Privately owned Jipangu will pay $2 million for a 35% interest in the Blackdome gold mine, near Clinton, B.C. The Tokyo-based firm can increase this to 50% by spending an additional $1 million before Oct. 24.
The project is operated by Claimstaker Resources (CLN-V), which has agreed to spend $1.7 million on exploration and development to reactivate the former producer. Following startup, the two companies would share project costs on a pro-rata basis.
The agreement also calls for Jipango to buy a private placement of 1 million units of Claimstaker at 2 cents per unit, with each unit consisting of one share and one non-transferable share purchase warrant. One share purchase warrant entitles the holder to buy an additional share of Claimstaker at 50 cents for a period of 18 months. The placement generated poceeds of $250,000.
The Claimstaker-Jipangu deal represents the Vancouver-based company’s third attempt at securing financing to resurrect the mine.
In 1995, Aurizon Mines (ARZ-T) agreed to spend $2.5 million for a half-interest in the project. The deal switched hands during 1996, when Petro Plus (PPV-A) became the new joint-venture partner and subsequently agreed to finance the mine to production. Last year, Petro Plus sold half of its 50% interest to MCM Minerals, a private Alberta company, but payment defaults on the part of the joint-venture partners resulted in the termination of the agreement.
The Blackdome mine operated from 1986 to 1991, during which time it cranked out roughly 225,000 oz. gold and 760,000 oz. silver from 372,000 tons of ore. The average grade was 0.63 oz gold and 1.48 oz silver per ton.
Claimstaker has delineated a minable reserve of 195,000 tons grading 0.57 oz gold and 1.6 oz silver per ton. The mine is believed to contain a fully diluted mineral resource of 230,000 tons grading 0.48 oz. gold and 1.36 oz.
silver.
Under the current mining plan, about 89,000 oz. gold and 206,000 oz. silver are to be recovered over three years, assuming an average gold price of US$335 per oz. Cash costs per oz. are estimated at US$215, whereas daily mill throughput is forecast at 200 tons.
Claimstaker has 22 million shares fully diluted and close to $2 million in working capital. time it cranked out roughly 225,000 oz. gold and 760,000 oz. silver from 372,000 tons of ore. The average grade was 0.63 oz. gold and 1.48 oz. silver per ton.
Claimstaker has delineated a minable reserve of 195,000 tons grading 0.57 oz. gold and 1.6 oz. silver. The mine is believed to contain a fully diluted mineral resource of 230,000 tons grading 0.48 oz. gold and 1.36 oz. silver.
Under the current mining plan, about 89,000 oz. gold and 206,000 oz. silver are to be recovered over three years, assuming an average gold price of US$335 per oz. Cash costs per oz. are estimated at US$215, whereas daily mill throughput is forecast at 200 tons.
Claimstaker has 22 million shares fully diluted and close to $2 million in working capital.
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