Major General finds buyer for Hammerdown deposit

Major General Resources (MGJ-V) has sold its Hammerdown-Rumbullion gold resource in Newfoundland to privately held Abiting of Val d’Or, Que.

Situated near Springdale, the project has a resource of 600,000 tonnes grading 15 grams gold per tonne, equivalent to 300,000 contained ounces.

Abiting will pay $3.4 million in cash plus, following production of 70,000 oz. gold, $600,000 at the rate of $10 per oz. Once 200,000 oz. have been produced, Major General will receive $20 per oz. for the life of the mine, provided the price of gold is US$290 or higher. The deal is subject to a 120-day due diligence.

Abiting is controlled by mining engineer Robert Bryce, who estimates it will take 18 months to develop a 300-tonne-per-day underground operation on the property.

In other news, Major General will allow Atna Resources (ATN-T) to earn a 60% interest in its Spider Lake property in western Ontario in return for cash and expenditures totalling $2.4 million over five years. The 13-km-long property is in the Schreiber-Hemlo greenstone belt, which hosts the Hemlo gold deposits and two base metal massive sulphide deposits: Geco and Winston Lake.

Last year, volcanogenic massive sulphide-type mineralization was discovered in rhyolitic rocks at Spider Lake. Grab samples assayed up to 7.4% zinc, 1.4% lead and 1.5% copper, plus 101 grams silver and 0.87 gram gold per tonne. A recent induced-polarization survey outlined a 1,200-metre-long chargeability anomaly.

Atna has approved a $30,000 electromagnetic survey to delineate drill targets.