Hammerdown progressing toward feasibility
Major General Resources Ltd MGJ
Shares issued 35,650,047 Dec 1 close $0.28
Wed 2 Dec 98 News Release
Mr. Bernard Kahlert reports
Major General has signed an amending agreement with Battle Mountain Canada
which provides for the removal of BMC's back-in gold rights granted under
an original agreement dated Jan. 23, 1992, on the Newfoundland based
Rendell-Jackman claims. In consideration thereof, 50,000 shares of the
company will be issued to BMC.
The removal of this back-in right allows McWatters Mining to proceed with
the finalization of a formal option/joint venture agreement and subsequent
feasibility study in early 1999.
The Rendell-Jackman claims, which are part of the Hammerdown property, host
the Hammerdown and Rumbullion gold deposits. Under a letter of intent dated
July 6, 1998, McWatters may earn a 50 per cent interest in the Hammerdown
property by making cash/share payments totalling $1-million to Major
General and completing a bankable feasibility study within 12 months of
signing the formal agreement.
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 cutoff grade of 5 g/t. In a scoping study
completed by consulting engineers Fluor Daniel Wright in 1995, production
costs are estimated at $150/oz gold at a production rate of 400 tonnes per
day.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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