The major, which operates the nearby Campbell gold mine, can earn a 55% interest from
As part of the deal, Placer has subscribed for 1 million treasury shares of Claude at 75 per share. It is the second such financing between the companies.
Madsen was one of the more successful mines to arise from the famous Red Lake staking rush earlier this century. Between 1938 and 1976, it produced 2.4 million oz. from 24 levels extending 4,000 ft. below surface.
Geologically, the Madsen deposit is structurally controlled, similar to other deposits in the camp. Gold mineralization is hosted by parallel mafic tuff units known as Austin and McVeigh, with the former sitting in the hangingwall of the later and accounting for virtually all historic output.
In 1998, Claude acquired Madsen and continued the former owner’s 3-year attempt at resurrecting the historic producer. Left-over stopes were initially targeted, only to give way to the more promising No. 8 zone in the McVeigh tuff.
Placer plans to sink 11,000 metres in 2001. Particular emphasis will be given to possible strike and depth extensions to the No. 8 zone, which was mined on a limited basis between 1969 and 1974.
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