NEWFOUNDLAND – Montreal-based RICHMONT MINES has sold its Nugget Pond property and gold mill on the Baie Verte Peninsula to NEW ISLAND RESOURCES of St. John’s for $2.25 million. Richmont received a $250,000 cash deposit and one million New Island shares.
New Island in turn sold the Nugget Pond gold plant to CREW GOLD of London, U.K., for $6.75 million, payable with 3.0 million shares of Crew Gold. Crew plans to use the Nugget Pond facilities to treat ore from its Nalunaq gold mine in Greenland. New Island retains the right to treat any ore from its Nugget Pond leases at the mill at commercial rates. Crew Gold plans to spend $8 million to refurbish and modify the mill and to build the necessary transportation facilities.
At the same time New Island and Crew have entered into a joint venture to explore New Island’s Glover Island gold property, located in Grand Lake, the largest in Newfoundland. Crew can earn a 60% interest by making $5.0 million in exploration expenditures. The property is estimated to contain an inferred resource of 4.0 million tonnes grading 2.0 g/t Au in the Lunch Pond South Extension zone plus another 450,000 tonnes grading 2.3 g/t Au at the Kettle Pond South zone. Geophysical surveys and drilling are planned.
More information about the Glover Island property can be found at www.NewIslandResources.com.