StrataGold adds gold projects in Yukon

Vancouver — StrataGold (SGV-V) has struck a deal to acquire Sterlite Gold‘s (SGD-T) interest in the Dublin Gulch and Clear Creek gold projects, near Mayo, Y.T.

The properties are held by New Millennium Mining, a wholly owned subsidiary of Sterlite Gold. StrataGold will buy all the shares of New Millennium Mining for US$6 million in cash and 5 million shares. The agreement is subject to underlying royalties and completion of due diligence by Feb. 14, 2005.

Meanwhile, Newmont Mining (nem-n) has arranged a $3.2-million private placement to fund part of StrataGold’s initial cash payment for the Sterlite purchase.

Newmont gets 6.5 million shares and 3.25 million warrants, with the warrants exercisable at 60 for two years after closing. The placement is conditional on the Alaskan property deal going through. Together, the two deals give Newmont about 16% and Sterlite about 12% of StrataGold’s shares, before the exercise of warrants.

Dublin Gulch and Clear Creek are adjacent to StrataGold’s Lynx Creek and Aurex properties. Gold Lynx Creek exists in a quartz-sulphide vein system hosted in granodiorite, which has returned up to 3.4 metres grading 7.3 grams gold. At the Aurex property, exploration has uncovered a skarn occurrence, also with impressive gold values.

In 1997, a zone at Dublin Gulch was estimated to have a proven and probable resource of 50.4 million tonnes grading 0.93 gram gold per tonne, though this has yet to be verified using National Instrument 43-101.