Granges will operate Alpine project

Granges Exploration will take over as operator of the Alpine gold project of Cove Energy Corp., under a multi-faceted agreement between the two companies. The project is located near Nelson, B.C.

Cove reports that under the agreement, Granges will take over management of Cove’s current $850,000 exploration and development program, being funded by a previously-announced $1-million flow-through issue, priced at $1.34 per share.

Granges can earn a 50% interest in the Alpine project by funding $2 million in subsequent exploration and development costs.

The agreement also calls for Cove and Granges to participate on a 70%/30% basis, in Cove’s favor, in proceeds of processing nearly 25,000 tons of dump material on the original Alpine mine property.