Bob: the latest developments from the Elkhorn Gold District:
$600,000 private placement completed
Treminco Resources Ltd TMO
Shares issued 10,508,197 Jun 17 close $0.50
Tue 23 Jun 98 News Release
Mr. David Hottman reports
Treminco has completed a private placement of one million shares at 60
cents for gross proceeds of $600,000. A portion of the private placement
has been purchased by company insiders. A finder's fee is payable on a
portion of the private placement to an arm's length party for those shares
placed by the same.
Proceeds of the financing will be used to complete a detailed due diligence
review of the Elkhorn project which was recently optioned by the company
from Newmont Gold Company and for general working capital purposes. The
Elkhorn project is an advanced stage gold project on the southern end of
the Elkhorn Mountains in Jefferson County, Montana. Over $12-million (U.S.)
has been spent on the exploration and development of the property by a
succession of related major mining companies including Gold Fields Mining
Company and Santa Fe Pacific Gold Corp. Drawing from a resource of +500,000
ounces of gold at a cutoff of 0.10 opt Au, Treminco's analysis indicates
that the Elkhorn project can be developed as a near-surface high grade
underground mine similar to Pegasus Gold's nearby operating Diamond Hill
mine. Analysis using an estimated diluted mineable reserve of 256,000
ounces (1.1 Mt at 0.240 opt Au, cut off grade 0.15 opt Au) and an
underground study completed by H.A. Simons, suggests the Elkhorn project
could support annual production of 45,000 ounces at a cash cost of
approximately $200-$230 (U.S.) per ounce. This first phase of development
will be expanded to accommodate reserve expansion from improving gold
prices, operational optimization and exploration successes. The due
diligence program will include confirmation drilling and audit, revision of
reserves and mine plan, metallurgical audit and a review and update of
environmental, permitting and community issues. In addition, the company
will begin a comprehensive exploration plan to investigate untested drill
targets and identify new areas of interest. |
