Citadel says it has agreed to pay Dunraine Mines (TSE) and Goldun Age Resources (COATS) $315,000 for a couple of McMurray Twp. properties located immediately south of the Surlaga mine.
The properties contain the former Parkhill mine which produced over 54,310 oz gold and 2,896 oz silver during the 1930s and the old Grace mine which churned out more than 15,000 oz gold and 1,363 oz silver from 1902 to 1 944.
Back in 1987, Citadel agreed to earn a 50% stake in the properties by spending $1.2 million on exploration over three years and making cash payments of up to $100,000. Work so far has included surface mapping, stripping and trenching on some of the known quartz veins.
In other news, Citadel is evaluating a couple of surface stockpiles located nearby as a source of mill feed for the company’s newly refurbished 500-ton-per-day mill.
Having poured the first gold bar at Surlaga, Citadel is having to mine the deposit before deciding whether or not it is economically viable at a rate of 20,000 oz to 40,000 oz annually.
Proven and probable reserves on the property stand at 358,500 tons of grade 0.215 oz gold per ton.
]]>
Be the first to comment on "Citadel adds claims to Surlaga holdings"