Major General $4-million gold deposit sale
Major General Resources Ltd MGJ
Shares issued 39,262,163 Nov 3 close $0.13
Wed 3 Nov 99 News Release
Mr. Bernard Kahlert reports
Major General Resources has sold its Hammerdown/Rumbullion gold deposit for
$4-million. The purchaser is Abiting Inc., of Val d'Or, Que. The sale is
subject to a 120-day due diligence period.
The Hammerdown/Rumbullion gold resource is contained within mining lease
No. 153 and is estimated by Major General to contain 300,000 ounces of gold
in approximately 600,000 tonnes. It is located near Springdale, Nfld.
Abiting anticipates it will take a year and a half to develop a
300-tonne-per-day underground mine.
Major General has received $100,000 and will receive a further $3.3-million
if Abiting elects to proceed at the end of the due diligence period.
Following production of 70,000 ounces of gold, Major General will receive a
further $600,000 payable at the rate of $10 per ounce of production until
130,000 ounces have been produced. After production of 200,000 ounces gold,
Major General will receive $20 per ounce for the life of the mine provided
the price of gold is $290 (U.S.) or higher. Price escalations are included
should gold exceed $350 (U.S.).
Abiting is a private company controlled by Bob Bryce, a mining engineer
with over 30 years of experience in the Quebec mining industry.
Major General retains extensive holdings along the Hammerdown deformation
zone and plans to continue exploring these holdings for gold. One target is
the Orion zone where Major General has already established a resource of
approximately 70,000 ounces of gold in 223,000 tonnes. Orion is still open
along strike and at depth.
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