By terminating joint-venture agreements with Asarco (AR-N), Guyanor Ressources (GRL.B-T) has regained control of two gold properties in French Guiana.
Guyanor, which is 69% owned by Golden Star Resources (GSC-T), terminated the St. Elie-Dieu Merci and Paul Isnard joint ventures after it was unable to reach an agreement with Asarco over exploration funding requirements.
Early this year, Asarco postponed its exploration funding for the properties, citing low copper prices. Guyanor terminated the joint ventures after Asarco announced plans to delay funding again.
“We understand and appreciate the impact of low copper prices on Asarco’s bottom line and their decision to cut exploration budgets in response.
However, Guyanor simply could not afford the possibility of having no meaningful work done in 1998 [at] the Paul Isnard and St. Elie projects, two of the best in our portfolio,” said Guyanor President David Fennell.
Under the termination settlement, Asarco agrees to pay Guyanor US$1 million and relinquishes all rights and obligations under the joint ventures.
Guyanor regains sole ownership of the St. Elie-Dieu Merci project, and an 87% interest in the Paul Isnard project, subject to approval by 13% stakeholder LaSource, a partnership between Australian-based Normandy Mining (NDY-T) and French government agency Bureau de recherches geologiques et minieres.
Since 1995, Asarco has spent US$7.2 million on exploration at St. Elie and US$4.2 million at Paul Isnard, and outlined resources amenable to open-pit mining of 1.4 million tonnes grading 4.2 grams gold per tonne in the Michel zone at St. Elie, as well as 18.7 million tonnes grading 2.5 grams gold at the Montagne d’Or massive sulphide target at Paul Isnard.
Pending the availability of funding, Guyanor is considering a 3,000-metre infill drilling program at Montagne d’Or, as well as an auger drilling program at Dieu Merci. Such work would not begin before the fourth quarter.
In the meantime, the company plans an interim work program at Paul Isnard of 2,000 metres of core drilling to test for possible strike extensions.
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