Euro-Nevada adds Hemlo area royalty to its portfolio

Toronto-based Euro-Nevada Mining (TSE) has acquired a 2 % net smelter royalty on a Hemlo, Ont., property which may host deep extensions of two of Canada’s biggest gold mines.

Owned by a Calgary company called International Interlake Industries (VSE), the 620-acre property is adjacent to both Hemlo Gold’s (TSE) Golden Giant and LAC Minerals’ (TSE) Page-Williams mine which together produced 626,169 oz gold last year.

It captures the down dip extension at the 4,000 ft level of the two Hemlo mines.

Working on behalf of operator Noranda Inc. (TSE), Hemlo Gold intersected 29.5 ft of grade 0.258 oz gold per ton at a depth of about 8,000 ft. during a deep drilling program in July. The intersection included 3.3 ft of 0.62 oz.

While the Interlake deal represents Euro-Nevada’s first royalty acquisition outside of the United States, the depth of the Hemlo intersections means that Euro- Nevada may have to wait a long time before seeing any return on its investment.

The company holds royalty interests in six other gold properties in Nevada and California.