The Garrison gold project will enter into production within the next month following Deak Resources’ (TSE) purchase of an 87.5% interest in the 106-claim property near Kirkland Lake, Ont. Deak, which owns and operates the Kerr mill in Virginiatown, Ont., purchased the controlling interest in the property from Silverside Resources (TSE) for $705,000. Deak has agreed to put the property into production within 30 days of closing the deal.
According to Deak, an open pit reserve of 50,000 oz. averaging 0.18 oz. per ton will be exploited immediately. From the bottom of this and another previously mined pit, Deak will begin underground development to test the remainder of the deposit and explore for potential reserves to the west. Overall, the property is estimated to contain a preliminary reserve of 452,000 tons grading 0.15 oz. per ton and has been explored to a depth of 400-500 ft.
Deak has paid Silverside an initial sum of $100,000 and will pay the balance of the purchase price by March 31, 1991. The ore from the Silverside property will be trucked to the Kerr mill for processing.
Recently, LAC Minerals (TSE) dropped its option to earn a 50% interest in the Garrison property. LAC and Perrex Resources (ASE) retain a 12.5% interest. Perrex will have the option of acquiring 37% of Silverside’s interest at Deak’s expense.
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