TVX buys stake in Czech property

Toronto-based TVX Gold (TSE) has acquired a 90.5% equity interest in a Czech company which holds the Kasperske Hory gold property.

Situated 160 km southwest of Prague in the Czech Republic, the property comprises several gold-bearing quartz veins within a shear zone. Mining has allegedly been carried out “since ancient times.”

The exploration target has been developed with the aid of more than 1,200 metres of underground workings and 20,000 metres of drilling. Proven and probable drill-indicated reserves are about 1 million tonnes averaging 8 grams gold per tonne.

TVX has agreed to carry out US$3 million worth of exploration and development, which would consist largely of drifting and drilling. The company hopes to increase reserves by 1 million oz. within the coming year. The 90.5% interest was acquired from Royalstar Resources (VSE) and Paramount Ventures (VSE). Both companies sold a 40% interest in Bohemia Dulni, the Czech company, for US$1 million and 600,000 TVX shares. TVX bought an additional 10.5% from Royalstar for US$1.25 million.

Within two years, TVX must decide whether to put the deposit into production. If it decides to do so, TVX will issue another 400,000 shares to Royalstar and Paramount.