TVX boosts stake in gold projects

Gold-producer TVX Gold (TSE) has increased its ownership in two projects and is considering buying a third.

TVX bought a 10.3% interest in the Brasilia mine for US$14 million from a private company controlled by Eike Batista, TVX’s chairman and chief executive officer. As a result, it now holds a one-third interest in the gold mine, situated in Paracatu, Brazil. In 1994, production reached 168,000 oz. at a cash cost of US$196 per oz.

The company also bought the remaining 9.5% equity interest in the Kasperske Hory project in the Czech Republic. TVX, now the sole owner of the project, is completing a US$3-million program of exploration and development, consisting of 4,900 ft. of drifting and 65,600 ft. of drilling. It hopes to define reserves of 1 million oz. gold by year-end.

Looking to add another European project to its holdings, TVX is attempting to buy and develop the assets of Kassandra, a Greek mining company which is now bankrupt. The winning bid will be announced in early March.