Bitech to sell Nugget Pond gold property

According to a signed letter of intent, privately owned Noveder can acquire the Nugget Pond gold property from Bitech (ASE).

Situated on Newfoundland’s Baie Verte Peninsula, the property has estimated minable reserves of 453,000 tonnes grading 12.79 grams gold per tonne. To earn a 30% interest, Noveder will pay $400,000 by August, 1995, and spend $4 million on development and pilot milling. The Rouyn-Noranda, Que.-based company can earn an additional 70% by placing Nugget Pond in production at a minimum milling rate of 300 tonnes per day.

Bitech will retain an 8% net smelter return (NSR) royalty on the first 200,000 tonnes of ore mined and processed. It will receive a variable NSR of 2-8% (depending on gold grade and price) on all other ore mined and processed. The agreement has yet to be approved by regulators and company directors. In other news, Bitech is transferring its interest in its other mineral properties to Betts Cove Minerals (CDN), a subsidiary. Once this transaction is completed, exploration will begin on the various holdings.