NOVA SCOTIA –The Global Resource Fund of Renvest Mercantile Bancorp has agreed to loan Ressources Appalaches of Rimouski, QC, US$8.5 million for capital expenditures associated with reopening the Dufferin gold mine near Port Dufferin. The loan has an interest rate of 12% per annum and is secured primarily by the Dufferin project. It is repayable over 24 months.
Last year Appalaches bought out its joint venture partner, StrikePoint Gold, and became the sole owner of the property. The Dufferin mine operated briefly in early 1995 and again from late 2000 to January 2002. No 43-101-compliant resource estimates are available, but the property is known to contain several saddle veins, two of which returned assays of 17.5 g/t Au and 12.0 g/t.
The 43-101 technical report filed earlier this month recommended Appalaches proceed in three phases – dewatering, bulk sampling and drilling, followed by an economic study. Cost of the work would be approximately $4.5 million.
The technical report may be read in its entirety at RessourcesAppalaches.com.
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