ONTARIO – Queenston Mining of Toronto has agreed sell its 50% joint venture interests in seven properties in the Kirkland Lake Gold Camp to its partner, Kirkland Lake Gold of Toronto. KLGold has agreed to pay $60 million in installments during 2012 plus a potential production royalty.
Stew Carmichael, KLGold’s exploration manager commented, “For the last six years the company’s underground exploration focus has been on extending the South Mine Complex (SMC) where we have enjoyed success outlining high grade gold in a large percentage of holes drilled on the South Claims, HM, and Amalgamated Kirkland claims. In the short term, we plan to immediately begin exploration drilling from both underground and surface on these properties. Long term exploration plans will include extending the Macassa 5300-foot level east and establishment of drill bays for future exploration.”
Queenston intends to use the proceeds of the sale at its 100%-owned Upper Beaver gold project. The preliminary economic assessment outlined a mine and 2,000-t/d mill that will production 120,000 oz of gold and 5.3 million lb of copper annually.
Visit Queenston.ca or KLGold.com.