A feasibility study by Westmin Resources (TSE) will evaluate the viability of mining the Porcher Island gold deposit near Prince Rupert, B.C.
Westmin can earn a half interest in the former producer from Cathedral Gold (TSE) by completing the study and by advising Cathedral that it wishes to proceed with mine development before the end of this year.
The study will evaluate the possibility of shipping ore from Porcher Island 215 km by barge to Westmin’s Stewart B.C. mill.
Porcher Island has accessible reserves estimated at 150,000 tons grading 0.25 oz. gold per ton, with considerable potential for reserve expansion. Project economics are expected to be improved by simple size-sorting of the broken ore to improve the reserve grade and tonnage to 90,000 tons of “shippable” material grading 0.4 oz.
Should Westmin proceed with mine development, Cathedral will have 60 days to decide whether to participate in a 50% joint venture or reduce to a 25% net profits royalty and a 3% net smelter return royalty.
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