Through an agreement with a third party, International Freegold Mineral Development (VSE) has acquired an option on the Almaden gold project, 75 miles northwest of Boise, Idaho.
Ican Minerals (TSE) currently has a 100% working interest in the property, and U.K.-based Compass Capital holds the option that Freegold is acquiring.
The option will enable Freegold to earn an initial 60% interest by meeting all the required property payments and completing a feasibility study by Feb. 1, 1997.
A feasibility study, completed by Amax Gold in 1993, estimated the Almaden geological resource at 39.9 million tons grading 0.022 oz. gold per ton.
The project size did not meet Amax’s investment criteria and the major subsequently dropped its option.
Later drilling by Ican resulted in the discovery of three additional gold zones, thereby expanding the resource base. The company projects the geological resource at 66 million tons grading 0.023 oz. gold.
The property is viewed as a potential open-pit, heap-leach development, and a series of bulk metallurgical column-leach studies is being conducted at Hazen Research in Denver, Colo.
Contingent on the results of its feasibility study, Freegold will issue Compass up to 9 million shares, based on a formula tied to the recoverable gold resource.
Upon completion of the feasibility, Compass will acquire the remaining 40% interest in the property from Ican for common stock, or through some form of amalgamation. The 40% interest would then be transferred to Freegold.
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