The company can earn a 60% interest in the Alaskan mine project and other assets held by Alaska Apollo Gold Mines (VSE) on Unga Island (part of the Aleutian Islands) by spending a total of $7.5 million. The initial target date for production was set at September, 1991.
A surface drilling program to delineate ore reserves and to determine mill size is expected to be completed before the end of July, 1989 at a cost of $250,000. John Bogert, president of Alaska Apollo, said recent studies have shown a 300-ton-per-day mill may be more economical than the previously planned 200-ton-per-day unit.
At last report, the project had reserves of 278,201 tons grading 0.524 oz gold and 2.47 oz silver. The Shumagin mine is located less than seven miles from the small town of Sand Point on Unga Island, and is a short distance from the Apollo mine which produced from 1894 to 1908. Because of the moderate climate of the Aleutians, year round mining is feasible.
At the start of commercial production, Ballatar would receive 80% of profits to a limit of its total expenditures. The profits would then be split 60% to Ballatar and 40% to Alaska Apollo.
Ballatar would have full management control over the development program and subsequent operations. The company is currently exploring for gold on property near the producing Blackdome Mine in southern British Columbia.
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