MacDonald results marred by dispute

Bench development at the Big Golden Hill prospect in Cuba has exposed a zone of mineralization averaging 0.53 gram (0.015 oz.) gold per tonne over 372 metres and increased the potential to outline a heap-leachable oxide gold resource.

MacDonald Mines Exploration (MMP.A-A) reports that a hole drilled vertically from the same bench, at the 105-metre level, averaged 0.63 gram (0.018 oz.) gold per tonne and 11.2 grams silver per tonne over 49 metres.

But an ongoing dispute between MacDonald and partner Golden Hill Mining (GHMC-C) has complicated future plans for Golden Hill, a 2,000-sq.-km concession with 11 gold showings. The two juniors share a half stake in the property, while the remaining half is held by Geominera, a Cuban agency.

The 50-50 joint venture calls for MacDonald and Golden Hill Mining to spend an equal amount on exploration. Under the agreement, joint-venture interests are subject to dilution if financing commitments are not met, says a spokesman for MacDonald.

Golden Hill Mining says its commitment to spend US$600,000 of the US$2.2-million budgeted for this year’s exploration program reduces its stake in the joint venture to 49.7%. But MacDonald disagrees, maintaining that the financing shortfall dilutes Golden Hill’s interest to 35%.

“It’s a question of understanding,” the MacDonald spokesman says of the joint-venture agreement.

He adds that MacDonald will continue exploration on the project and expects to announce a reserve figure this fall.

As a result of the dispute, Golden Hill has refused to continue discussions that would allow MacDonald to take control of the partners’ stake in the Cuban prospect.

Alberta-based Mill City Gold Mining (MIY-V) has a 42% interest in Golden Hill Mining.