Despite a positive feasibility study on the Almaden gold deposit in western Idaho, Amax Gold (NYSE) has decided not to participate in its development.
The company had the option of earning a 65% interest in the property, which is owned by Ican Minerals (TSE).
According to the study, 325,000 oz. gold could be mined profitably at US$400 per oz. Yet Amax decided to back out because the size of the deposit falls short of its minimum recoverable ounce requirement.
Ican will review the study to determine the best approach for development. Drilling is planned, in a previously untested area thought to contain potential reserves.
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