Athabaska now waits for Chevron to sell Nicholas Lake stake

Vancouver-based Athabaska Gold Resources (TSE) says it has been unable to raise the financing needed to buy partner Chevron Minerals’ 40% stake in the Nicholas Lake gold project north of Yellowknife, N.W.T. Athabaska says its cash offer was rejected by Chevron and exploration at Nicholas Lake is now on hold until Chevron finds a buyer for its property interest.

“Chevron advised that it values the Nicholas Lake project highly and is reluctant to remove it from its larger package of Canadian mineral interests being offered for sale,” Athabaska said.

Athabaska can now either accept a new joint venture partner or claim its right of first refusal to acquire Chevron’s interest.

The next logical step at Nicholas Lake, according to independent consultants, is an underground bulk sample test. Preliminary reserves on the property now stand at 1.2 million tons of grade 0.42 oz. gold per ton.

Based on throughput of 121,000 tons per year and a 95% recovery, the consultants estimate initial production costs of US$227 per oz. and operating costs, including ongoing development and administration, of US$117 per ton.