Shares in Pacific Rim Mining (PMU-T) darted 34 lower to $1.69 in early trade on Dec. 15 after the company reported that Kinross Gold (K-T) has filed to sell up to its entire 22% stake in the junior gold miner.
Kinross, the world’s seventh biggest gold miner, currently holds around 17.6 million shares. It came by its stake in April 2002 via the merger of Pacific Rim and Dayton Mining, in which had a significant shareholding.
Kinross’ chief executive Robert Buchan has resigned from Pacific Rim’s board to avoid a potential conflict of interest during the sale.
Kinross plans to begin selling its shares by December 16, but has assured the junior that the sales will be designed to avoid flooding the market. The sales will be either through the Toronto Stock Exchange or private transactions.
In other news, recent drilling by Pacific Rim has cut a new gold mineralized structure about 1.2 km east of the Minita vein at its El Dorado gold project in El Salvador.
Hole 268, the first hole to test the Gonso vein structure, returned 11.1 grams gold and 118.1 grams silver over a true width of 1.35 metres, beginning at a downhole depth of 396.1 metres. Pac Rim says the intercept is situated n the lower portions of the productive interval, where grades generally drop off. Results are pending from a second hole (no. 270) collared 250 metres along strike to the southwest.
The company plans to move a second drill rig, currently testing veins in the North District, to the Gonso vein to accelerate delineation of the discovery.
Meanwhile, step-out drilling on the Minita vein system was highlighted by a 3.5-metre section running 11.5 grams gold and 103.8 grams silver in hole 262. The remaining six holes generally yielded 6-30 grams gold and 20-220 grams silver over smaller widths.
At last count, the Minita vein system was home to a measured and indicated resource of 1.6 million tones grading 11.4 grams gold and 70.3 grams silver, for 585,000 oz. of contained gold and 3.6 million oz. of contained silver.
Three holes were sunk on subsidiary veins in the San Matias system in the North district failed to cut any significant mineralization. Similarly, a single hole to test the Candelaria and Chica veins in the Central district came up dry.
Scout drilling at San Matias will follow drilling at Gonso.
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