newswire.ca
The property has been JV with McWatters. Mcwatters will be paying cash, shares and the costs of development to get in. Profits %50/50.
"Resource estimates by Company geologists have outlined a drill indicated resource of approximately 356,000 ounces of gold in 614,400 tonnes grading 18.01 g/T Au (0.52 oz/t Au) at a cut-off grade of 5 g/T. Mineable reserves will be calculated by McWatters during the feasibility study.
In a scoping study completed for Major General in 1995, consulting
engineers Fluor Daniel Wright estimate production costs of approximately $150/oz gold at a production rate of 400 tonnes per day. Metallurgical studies completed on drill core by Lakefield Research indicates high recovery rates of 94-97% of gold may be achieved.
Elsewhere on the property, a number of other gold targets related to the Hammerdown deformation zone are known and will be explored by Major General during production to extend the life of the mining operation. Included is the nearby Orion Gold deposit that has been evaluated by wide spaced drill holes to a depth of 400 metres. Company geologists estimate a resource of 291,000 Tonnes grading 8.65 g/T Au containing just over 80,000 ounces gold. The mineralized deformation zone is open to depth."
Let me see 356,000 /2 = 178,000 ounces x $150 per ounce= $26,700,000.00 U.S. X 1.5= Can $40,050,000.00 for MGJ plus at least another 80,000 ounces in Orion on the same property.
I love this. The SEABEE mine in Saskatchewan started out about 8 years ago with 300,000 ounces indicated. They have mined about 300,000 ounces and they still have 300,000 ounces indicated.
Hammerdown could be a real little company builder for MGJ.
I would say that this is not a speculative stock at $.30. It is a steal at a $1.00. |
