Meston gets extension for option on MSV’s Eastmain

A joint venture agreement between Campbell Resources’ (TSE) subsidiary Meston Lake Resources and MSV Resources (ME), scheduled to expire March 31, has been extended for an indefinite period of time.

The agreement allows Meston Lake to earn a 50% stake in MSV’s Eastmain gold project near Chibougamau, Que., by paying $250,000 to MSV and providing $2 million after third-party financing has been arranged.

A mill facility owned by Campbell Resources will also be available for use, under the agreement, should Eastmain be brought into production. The deposit has proven and probable reserves of 952,374 tons grading 0.35 oz. gold per ton.

“We are still awaiting environmental permits for the mining project and the winter road,” said MSV President Mario Caron, who claims that any further delays could affect the joint venture’s development schedule. The joint venture is planning to apply for a grant from the provincial government for complementary work to be carried out on the property. As no milling facilities will be required on site, it is estimated about $17 million will be needed to place the Eastmain project in production. Campbell is a 25% owned affiliate of Toronto-based Northgate Exploration (TSE).