Westward selling Preview project

Faced with a financing deadline, Westward Explorations (VSE) will sell its 20% interest in the Preview Lake gold project in Saskatchewan.

Cameco and Uranerz Exploration and Mining, which hold 50% and 30% interests respectively, will pay Westward $4.6 million for its stake.

According to the property agreement, Westward had to commit to its share of funding by Nov. 2, 1993, or sell its interest for twice its expenditures to date.

The $4.6-million will be paid in five annual installments, beginning at the time of production.

Cameco, the operator, is proceeding with a first phase of development. This consists of creating an underground entry, to be followed by sampling and test mining at a cost of almost $6 million.

The estimated cost of bringing the mine into production, at a milling rate of 700 tonnes per day, is $31.1 million. Minable reserves at Preview Lake are estimated at 1.3 million tonnes grading 8.01 grams gold per tonne. The first phase of work should be finished in January. If the decision is made to proceed to production, the mine could start up by the end of 1994. Windarra Minerals (TSE) holds about 77% of the issued shares of Westward.