NEVADA – Premier Gold Mines of Thunder Bay, ON, is buying Goldcorp‘s 40% interest in the former South Arturo mine 35 km northwest of Elko, in the Carlin Trend. Barrick Gold holds the remaining 60%. South Arturo is 8 km northwest of Barrick’s Goldstrike mine.
Premier has agreed to pay Goldcorp US$20 million and toss in its 5% interest in the Rahill-Bonanza joint venture near Red Lake, ON. Concurrent with the acquisition, Goldcorp has agreed to make a C$12.5 million private placement with Premier.
The South Arturo mine operated as both an underground and open pit from 1984 to 2000. Barrick has advanced the project toward reopening, with the environmental impact assessment and plan of operations approved in 2014. Development of the pahse two pit is underway. The high grade, near surface portion (about 440,000 oz) is to be mined in 2015 and 2017, and the ore treated at the Goldstrike plant.
Premier’s 40% share of resources will be 20.47 million measured and indicated tonnes at 1.30 g/t Au containing 860,000 oz of gold. Premier’s share also includes 3.87 million inferred tonnes at 0.68 g/t Au containing another 80,000 oz.
A presentation for the South Arturo project can be found on Permier’s website at PremierGoldMines.com.