Acadian just announced this morning the acquisition of this Getty deposit, so they didn't have the 1% royalty to give away. I'm not sure why Getty states they acquired it from Acadian. Maybe it was part of them getting this deal done, as maybe Globex was a competing bidder with the government.
In February, the CEO mentioned trying to acquire the Getty deposit, apparently from the Nova Scotia Department of Natural Resources:
Interestingly enough, I think just over here off the map there's another lead-zinc deposit that was drilled by Getty Minerals in the 1970s as well. This is under closure by the government right now. So, clearly, from our point of view, if we're successful in closing this acquisition and bringing this into production, then the mine life or the life of this plant could be extended considerably, this deposit, this over here, sitting with the government under closure at the moment.
We approached DNR already on this and indicated our interest. As you can appreciate, if we close this then it makes more sense for the owner of this property to have access to resources next door. That's assuming these resources are actually economically viable which we don't know yet. We just know that there is a deposit there.
Here's Acadian's announcement on the acquisition, which also mention's Globex's royalty:
ACADIAN GOLD ACQUIRES FORMER GETTY MINING ZINC-LEAD DEPOSIT ADJACENT TO ITS SCOTIA MINE
Halifax, Nova Scotia CANADA, November 15, 2006 /FSC/ - Acadian Gold Corporation (ADA - TSX Venture), ("Acadian Gold") announced today that it was the successful bidder for the exploration rights to 86 mineral claims covering 3,440 acres (1398.4 hectares) contiguous to the Scotia Mine (zinc-lead) at Gays River, Nova Scotia, Canada. The claim group is important to Acadian Gold in that it covers the "Getty Deposit" (zinc-lead) which was discovered in 1972 by Getty Mining Northeast Limited ("Getty"), a subsidiary of Getty Oil.
The Getty Deposit is the westerly extension to the adjacent Scotia Mine deposit which is located 700 metres to the east. Based on a 1.5% zinc-equivalent cut-off grade, resources (uncategorized) at the Getty Deposit were estimated (Hudgins & Lamb, 1992 for Westminer Canada Limited) at 4.5 million tonnes at an average grade of 1.9% zinc and 1.3% lead. This resource estimate is historical in nature and is not compliant with National Instrument 43-101 and as such should not be relied upon. Nevertheless, historical drilling on this deposit points to two zones of particular interest with respect to potential open pit possibilities and two zones with potential underground possibilities.
The Getty Deposit resources described above are in addition to the 5.24 million tonnes of measured and indicated resources grading 4.1% zinc and 2.0% lead and 1.8 million tonnes of inferred resources grading 3.1% zinc and 1.1% lead at the adjacent Scotia Mine. For additional information on the Scotia Mine deposits, see Acadian Gold Press Release No. 16-06, July 17, 2006. The Getty Deposit resources are an important acquisition for Acadian Gold, which along with the 1.8 million tonne inferred resource at Scotia Mine provide potential for an extended mine life.
The Scotia Mine currently has a reserve sufficient for five years of open pit production planned at 700,000 tonnes per year and 2.5 years of underground production planned at 472,500 tonnes per year. Future work programs will be designed to bring the Getty Deposit into National Instrument 43-101 compliance and ascertain its development potential.
In addition to hosting the Getty Deposit, this new group of claims has potential for additional discoveries. The Getty Deposit is hosted by a carbonate reef on an island-like basement high that is connected to the Scotia Mine reef deposit by a basement saddle. A similar style island-like basement high may exist to the north of the Getty Deposit, and is considered a high priority drill target.
This newly acquired claim group is subject to a 1% gross metal royalty to Globex Mining Enterprises Inc. (GMX-TSX, G1M Frankfurt). Acadian Gold has an option to purchase one-half percent for $300,000 at its option at any time, and has a first right of refusal on the remaining one-half percent. Acadian Gold has posted a bond with the Nova Scotia Department of Natural Resources to support a work program on the property.
Management's Opinion
Will Felderhof, President and CEO, stated "Clearly this is a very positive development for Acadian Gold, in that it significantly enhances the potential for extending the Scotia Mine mine life beyond the 7.5 years supported by the current reserves."
About Acadian Gold
Acadian Gold is a Halifax, Nova Scotia, Canada based resource company focused on exploring and developing gold and zinc properties in Atlantic Canada.
In addition to exploring and developing zinc properties in Nova Scotia through the Scotia Zinc Project, Acadian Gold is currently focused on developing four advanced gold properties, Beaver Dam, Tangier, Forest Hill and Goldenville, which form the core holdings of the Scotia Goldfields project. All of the four advanced properties host gold resources described in technical reports prepared in compliance with National Instrument 43-101 and are available on www.sedar.com. A summary of gold resources is provided in Press Release No. 01-06, January 5, 2006, under the paragraph titled "About Acadian Gold". Acadian Gold is bringing a new approach to the development of Nova Scotia gold deposits by pursuing a multiple mine central processing, managing and servicing strategy.
The principal focus in the Scotia Zinc project is the Scotia Mine which is slated to commence zinc and lead production in Q2-2007. At a planned rate of production of 700,000 tonnes per year from the open pit, the Scotia Mine is expected to produce 30,000 tonnes of high grade zinc concentrate and 10,000 tonnes of high grade lead concentrate per year. This is equivalent to 39.8 million pounds of zinc and 16.5 million pounds of lead annually. The projected cost of production is US$0.34/pound zinc equivalent. Please see Press Release No. 16-06, July, 17, 2006 for further details.
Other
Peter C. Webster, P. Geo., is responsible for the management and supervision of the Company's exploration programs and is responsible for the preparation of the technical information reported in this news release pertaining to such. Mr. Webster is an independent third party geologist, President of Mercator Geological Services Limited and a qualified person as defined by National Instrument 43-101.
Technical information pertaining to the Scotia Mine Project was sourced from the "Resource Reserve and Feasibility Study" ("Study") announced on July 17, 2006. The principal author of the Study was Mr. Doug Roy, M.A.Sc. (Mining Engineering), P. Eng., who is an independent, third party mining engineer employed by MineTech International Limited of Halifax, Nova Scotia, Canada, and is a Qualified Person as defined by National Instrument 43-101. Mr. Roy is responsible for the preparation of the technical information reported in this news release pertaining to the Scotia Mine Project.
Certain information regarding the Company contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees. Discussion of the various factors that may affect future results is contained in the Company's 2005 Annual Report which is available at www.sedar.com. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
For additional information on Acadian Gold's properties and activities, please visit our web site at www.acadiangold.ca. If you wish to be added to Acadian Gold's email or fax distribution list for future news releases and updates, please contact us at phone: 902-444-7779, fax: 902-444-3296. FOR FURTHER INFORMATION, PLEASE CONTACT:
G. Will Felderhof, President & CEO
or Terry F. Coughlan, Vice President
902-444-7779 / 1-877-444-7774
mail@acadiangold.ca
Halifax, Nova Scotia
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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