CADILLAC, Quebec BREAKWATER RESOURCES has sold its interest in the Lapa gold property to AGNICO-EAGLE MINES. The property is located about 10 km east of Agnico's LaRonde gold mine.
Agnico has agreed to pay $8.925 million to Breakwater for 100% ownership. Another $1 million will be payable to Breakwater if the published inferred mineral resource at Lapa reaches 2 million oz of gold. Breakwater retains a net smelter royalty.
The Lapa property consists of the Tonawanda and Zulapa zones. Earlier this year an estimated inferred resource was made at 2.97 million tonnes grading 8.5 g/t Au. The mineralized zone is at least 400 m long and has a vertical extent of 610 m. A 3-D map of the property is available at www.agnico-eagle.com by clicking on Operations.