Miramar takes over Athena

Gold producer Miramar Mining (TSE) has cleared the final hurdle for its acquisition of Athena Gold (VSE).

Shareholders of Athena received one common share of Miramar for every 2.8 common shares held. As a result, Miramar now has 46 million shares outstanding.

The target of the acquisition is Athena’s Talapoosa gold-silver project in Lyon Cty., Nev. Miramar believes the heap-leachable deposit can be brought to production within 18 months. Revised reserve estimates place the proven and probable figure in the range of 55.9 million tons grading 0.026 oz. gold and 0.39 oz. silver per ton. Possible and inferred reserves are estimated at 6.8 million tons grading 0.015 oz. gold and 0.33 oz. silver.

Extensive metallurgical testwork indicates gold recoveries of 78% for oxide material and 60% for sulphides, while silver recoveries are estimated at 55% for oxides and 50% for sulphides.

The property has incurred more than $6 million in exploration expenditures, including $2.5 million by Pegasus Gold. Permitting is under way. Meanwhile, Miramar’s Con gold mine, near Yellowknife, N.W.T., posted a record production of 125,519 oz. for 1994. Gold recovery averaged 92.3% for the year, at a cash cost of about US$282 per oz. Proven and probable reserves stand at 4 million tons grading 0.31 oz., compared with 3.7 million tons grading 0.31 oz. from the previous year, an 8.1% increase.

Underground drilling from the 2,300-ft. level continues to test the upward extensions of the 101 and 102 trends, over an area outlined by 600 ft. of strike and 800 ft. of dip. Almost half of the 5.2 million oz. produced to date was mined from the two trends, from 2,400 ft. down to 5,700 ft. The 101 zone contains free-milling ore, while the 102 is refractory. Selected drill results are as follows:

Hole Width Gold

(ft.) (oz./ton)

102 Zone

9010 7.6 0.39

9011 6.1 0.48

9012 14.8 0.34

9090 8.6 0.24

9091 17.4 0.33

9092 13.2 0.45

9094 20.2 0.63

9095 11.3 0.32

9096 14.0 0.44

9097 11.5 0.15

101 Zone

9007 7.6 0.39

9088 6.1 0.30