Toronto-based Conwest Exploration (TSE) has gained an 18.1% direct interest in Granduc Mining (TSE) by buying 2 million shares of the junior gold producer.
A further 815,330 shares were bought by Conwest-associated company Jascan Resources (TSE). Jascan is 49.6%-owned by Faraday Resources (TSE) which, in turn, is 24.3%-owned by Conwest. Faraday also has an 18% equity and 49% voting interest in Conwest.
Details of the price and the name of the seller in the off-market transaction were not released, although it is a matter of record that Hecla Mining (NYSE) coincidentally owns 2.8 million shares of Granduc.
Granduc’s major asset is its right to earn from Black Hawk Mining (TSE) a half-interest in the Keystone gold project near Lynn Lake, Man. Since startup in September, 1993, Keystone has produced 6,150 oz. gold.
The company has mined 665,500 tonnes of overburden, including 95,500 tonnes of ore grading about 3.55 grams gold per tonne.
The Lynn mill has processed 73,200 tonnes grading 3.24 grams gold per tonne and recoveries have averaged 85%.
Kilborn Engineering Pacific is reviewing milling operations with a view to boosting daily capacity to 1,500 tonnes, and possibly as high as 1,800 tonnes, from the current 1,200 tonnes.
To date, mill throughput has been below normal, at about 800 tonnes per day. This is mainly due to frozen ore and mechanical problems. Recent modifications to the fine ore bins are expected to improve mill throughput.
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