TORONTO - KINROSS GOLD CORP. has agreed to sell two of its inactive gold properties. The Lupin mine will go to WOLFDEN RESOURCES of Thunder Bay, Ont., and the Blanket mine will go to CALEDONIA MINING of Toronto.
In March CMJ reported the sale of the Lupin property in Nunavut to Wolfden. This week it looks more like Kinross is paying Wolfden to take the property off its hands. Wolfden reports the details of the agreement thus:
Wolfden will receive from Kinross the winze and hoist that were previously removed from the mine. Kinross will reimburse Wolfden $1.7 million for fuel during the next trucking season. Kinross will deliver to Wolfden at closing a standby letter of credit in the amount of $3 million to be draw upon at the commencement of the demolition of the Lupin mill. In the event that the purchaser places the mill back into operation, the Letter of Credit shall be returned to Kinross. Kinross will pay up to $4 million for reclamation of the site in the event that the Lupin mill is moved, or will pay Wolfden $1 million at the time of reclamation in the event that the mill is put back into production. Kinross will retain a 1.0% NSR relating to any ore mined from the Lupin property. (See also www.WolfdenResources.com.)
Kinross has struck an agreement worth 20 million Caledonia shares and US$1 million in cash to transfer ownership of the Blanket mine in Zimbabwe to Caledonia Mining. The mine currently mills 600 tonnes/day of ore from underground, producing approximately 25,000 oz annually. To boost output to 40,000 oz/year, a new shaft is being sunk and the mill throughput raised to 1,000 tonnes/day. Proven and probable reserves are estimated at 3.2 million tonnes grading 4.24 g/t Au. (See also www.CaledoniaMining.com.)
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