An agreement to purchase the 75% interest of American Barrick Resources (TSE) in the Pandora gold property near Malartic, Que., has been negotiated by Queenston Resources (TSE).
The deal, expected to be completed by March 31, will give Queenston 100% ownership of the property. In return for its interest, Barrick will receive 300,000 Queenston treasury common shares and a 0.5% net smelter return on future gold production.
Since 1987, Barrick has drilled more than 100,000 ft. on the eastern portion of the property and outlined three zones. Combined preliminary reserves are estimated to be 2.42 million tons averaging 0.13 oz. gold per ton (0.08 oz. cutoff grade) or 1.7 million tons at 0.15 oz. (0.1 oz. cutoff grade). All three zones remain open below 950 ft. and along strike to the west, Queenston says.
In 1990, Barrick extracted a 40,000-ton bulk sample from one of the zones, with processing taking place at its nearby Camflo mill.
On the western side of the property, Queenston says, Pandora hosts a 500-ft.-deep shaft with headframe, hoist and service buildings.
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