ONTARIO — San Gold, the high-grade gold miner from Bissett, MB, is making its first foray outside that province to the Timmins gold camp. San Gold has signed a letter of intent with Laurion Mineral Exploration of Toronto to acquire Laurion’s 31.5% share in the Davidson-Tisdale gold deposit and its 100% interest in the North Tisdale property.
San Gold has agreed to pay $1 million and issue 1 million common shares to Laurion. Due diligence is expected to take about 60 days.
San Gold would like to create a joint venture with VG Gold (also of Toronto) which holds the remaining 68.5% interest in the Davidson-Tisdale mine. If all goes according to plan, San Gold will pursue an aggressive exploration program in hopes of putting the property in commercial production.
According to San Gold, The property has an interesting history that has resulted in a valuable accumulation of technical information. Sporadic attempts at development took place in the early 1900s. Mining and processing of a 44,000 tonne bulk sample in 1988 produced 7,300 oz of gold. The most intensive exploration program was carried out by Getty Canadian Metals and successor companies between 1984 and 1988 during which several non-43-101-compliant mineral estimates were made. A 1984 estimate to a vertical depth of 200 metres indicated 747,600 tonnes at 12.39 g/t Au, and a 1987 estimate indicated 512,500 tonnes at 16.53 g Au/t.
Laurion has posted a photo gallery from the Davidson-Tisdale property. It can be viewed at www.Laurion.ca.