IDAHO – Barrick Gold
of Toronto has agreed to invest at least $38 million (all figures U.S. dollars) in Midas Gold Corp
. of Vancouver. Midas’s principle asset is the advanced Stibnite gold project 64 km east of McCall.
[caption id="attachment_1003723158" align="alignleft" width="300"] Midas’ plan for the Stibnite project includes restoring areas abandoned after decades of historic mining. (Image: Midas Gold Corp.)
Barrick has subscribed to acquire approximately 46.6 million Midas shares at a price of $0.82 per share. The transaction is expected to close on or about May 15, 2018. Barrick will be given a seat on the Midas board and first refusal in respect of gold concentrates, among other considerations.
Midas had a preliminary feasibility study done for Stibnite in 2014. The project could produce over 300,000 oz. of gold annually. Life of mine cash costs are estimated to be $568. The project has an after tax net present value of $832 million and an internal rate of return of 19.3%. A feasibility study is currently underway.
The resource estimate was updated in February this year. There are 104.9 million tonnes grading 1.66 g/t gold and 2.53 g/t silver and 0.09% antimony. The inferred resource is 23.2 million tonnes at 1.29 g/t gold, 2.04 g/t silver and 0.04% antimony. There are three separate deposits on the Stibnite property and a historic tailings area that might be reprocessed.
Details of the Stibnite gold project are available at www.MidasGoldCorp.com.