Vancouver — Cross Lake Minerals (CRN-V) has acquired a 100% interest in the QR mine property from Kinross Gold.In the works for a few years, the company has accepted the transfer of the QR mining lease and related documentation from the Government of British Columbia. The QR property is located approximately 60 kilometers southeast of Quesnel, British Columbia.
Cross Lake had inked a deal with Kinross in July of 2002 to acquire 100% of the QR mine property.In exchange, Cross Lake would pay $50,000 in cash and arrange to release the $750,000 bond back to Kinross and release it from any future liability. Kinross loaned Cross Lake $300,000 in order to replace a portion of the bond.
Then in October last year, Cross Lake merged with Gold Giant Ventures which held an option to earn a 50% interest in the QR mine property.
Kinross operated the QR mine from 1995 until 1998 when it was placed on care-and-maintenance due to low gold prices. The QR mill, which is rated at 800-tonnes-per-day, and all related facilities were well maintained and are fully equipped. The permits for operation of the mill and tailings facility are also in place and given the green light, could recommence production fairly quickly and at little cost.
A diamond drill program is currently under way on the property to expand the resource which now stands at 903,510 tonnes averaging 3.1 grams gold per tonne. The drilling is focusing on the Midwest and North zones. The Midwest zone had been developed for underground mining by Kinross. The large North zone contains a partially developed open pittable resource and may be expanded to add to the life of the mine. Drilling last fall should add to the resource as well.