Enticed by Kazakstan’s mineral potential, Antares Mining & Exploration (ANZ-T), has cast its net over a portion of the shares of Steppe Gold Resources (SPE-V). The latter firm operates the Mizek gold project and two nearby polymetallic deposits in Kazakstan.
Toronto-based Antares will invest $300,000 in Vancouver-based Steppe by way of a private placement of 1.5 million treasury shares of Steppe at 20 cents each, plus 750,000 warrants. In so doing, Antares will gain an option to invest a further $1.7 million in Steppe on or before June 26 by acquiring a debenture from Steppe that would be convertible into 7.7 million Steppe shares at 22 cents each and 7.7 million warrants, with each warrant entitling Antares to acquire an additional Steppe share at 22 cents for one year.
Alternatively, the debenture can be converted into up to a 20% share of Steppe’s interest in the Mizek project.
Mizek, an oxide gold heap-leach project, is expected to produce 80,000 oz.
gold in its first year of operation at a cash cost of about US$120 per oz.
Startup is scheduled for later this year. As of July 1997, proven and probable reserves were 5.5 million tonnes grading 2.14 grams gold per tonne and inferred resources were 1.2 million tonnes grading 0.8 gram gold, based on a 0.8-gram cutoff grade.
Steppe also operates the Kosmurun and Akbastau deposits, 40 km south of Mizek, which boast aggregate measured and indicated resources of 1.8 billion lbs. copper, 850,000 oz. gold, 300,000 tonnes zinc and 16 million oz. silver.
Recent confirmation drilling at Kosmurun returned 90 metres grading 4% copper, 2.5 grams gold and 3% zinc, as well as 52 metres of 2.8% copper, 5.6 grams gold and 7% zinc.
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