Gert Jan,
The following statement is issued by Macmillan
MacMillan Gold Corp - News Release
MacMillan to sell 100% interest in Mishi project to Mishibishu
MacMillan Gold Corp (MMG)
Shares issued 9696626
1997-06-20 : close $0.48
Monday Jun 23 1997
News Release
An anonymous director reports
MacMillan Gold Corp has agreed to revise terms of its January 20 1997 agreement whereby Mishibishu Gold Corp would purchase a 50% interest in the Mishi gold project from MacMillan. Mishibishu will now purchase a 100% interest in this property in the Mishibishu area of northern Ontario. With a proven reserve of just under 200,000 ounces of gold, Mishibishu will immediately undertake a pre-feasibility study of the open pittable development of this gold deposit. A positive study will result in pit development beginning later this year with ore stockpiled for processing at the nearby Magnacon gold mill. Access to the facility precludes any major capital requirements for mill development and expedites the environmental proceedings required to develop both mine and mill.
The new agreement requires Mishibishu to pay $100,000 to MacMillan, to complete a comprehensive pre-feasibility study no later than August 31 1997 and to close the transaction by September 30 1997. MacMillan will be entitled to a royalty equal to 40% of the net profits generated from any of the mining leases and mining claims subject to this agreement. Mishibishu shall pay to MacMillan annually beginning one year from the date of the completion of the pre-feasibility study the amount of $100,000 as an advance on royalty payments accruing to MacMillan. Mishibishu must also expend $500,000 on exploration over a four year period on the mining leases and mining claims as part of the purchase agreement.
The Mishi gold property straddles the Mishibishu Lake shear zone and surrounds the Magnacon gold mine of Golden Goose Resources Inc, Windarra Minerals Ltd and Westward Exploration. This shear zone is a predominant regional structure hosting gold deposits and exceptional exploration potential. Previous exploration has outlined several areas of gold mineralization with an overall geologic reserve in the main zone area of 1,424,300 tonnes at an average grade of 4.26 g/t Au. The initial focus will be an open pittable reserve that has been alculated at 772,000 tonnes grading 3.3 g/t Au.
Mishibishu plans an active exploration program this summer at the Mishi claims in conjunction with the pre-feasibility study.
MacMillan will not be required to contribute any of the capital to put the Mishi gold property into production.
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