Inmet options Chevrier to GeoNova Exploration (September 04, 1995)

Montreal-based GeoNova Explorations (VSE) is acquiring the Chevrier gold deposit from Inmet Mining (TSE).

Situated 33 km southwest of Chibougamau, Que., the deposit contains a geological inventory exceeding 600,000 oz. gold. The overall property, comprising 4,861 hectares, was purchased for options on 400,000 GeoNova shares.

The options may be exercised in whole or in part for 30 cents per share in the first six months, 50 cents in the following 6 months, 75 cents during the second year, $1 in the third year, and $1.25 during the fourth.

GeoNova has also agreed to spend $2.5 million on exploration and development and file a feasibility study within 48 months. Inmet may then buy back a half interest by reimbursing all of GeoNova’s expenditures.

The deposit has a geological inventory of 8.3 million tonnes grading 2.8 grams gold per tonne, and studies indicate it hosts a diluted minable reserve of 2.5 million tonnes averaging 4.76 grams, sufficient to yield 225,000 oz. The mineralization was delineated by drill fences at 100- to 200-metre spacings over a strike length of 1,100 metres and to a depth of 400 metres. The zone remains open at depth and to the southwest.

Drilling and metallurgical testing will soon get under way.