Vancouver-based Placer Dome (PDG-T) has backed out of a deal with Gowest Amalgamated Resources (GWA-A) to acquire a stake in the McAlpine Lake gold property in northeastern Ontario.
The property lies on the western flank of the Fault Lake property, which Placer has optioned from Pelangio Larder Mines (PLIM-C). Fault Lake, in turn, lies on the western flank of Placer’s Detour Lake mine.
In early 1996, Placer agreed to spend $1.1 million on exploration over three years and pay Gowest $375,000 cash for a 70% interest in McAlpine Lake.
In September of that year, Placer intersected visible gold in two drill holes on the property during a 4-hole program designed to map structures and stratigraphy. One hole returned 0.7 gram gold per tonne over 0.3 metre and 1 gram over 1.2 metres. Another hole cut 0.3 metre grading 4.4 grams.
Although Placer has not explained its decision to terminate the option agreement, Gowest says, in a release, that a recent report on a large gold resource (3.4 million tonnes grading 7.6 grams gold per tonne) on the western part of Placer’s main Detour Lake property may have been “pertinent” to the move.
Two gold zones have also been found on the Fault Lake property, with grades and widths comparable with ore systems in the Detour mine.
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