Now that a prolonged fight with its Reid mine partners is over, Ter ramar Resource Corp. has commenced a major exploration program at the mine which will include dewatering the 800-ft level.
The main shaft will be rehabilitated along with lateral mine workings in preparation for an underground drill program. Targets include the Reid, Evening Star and several other parallel veins, Louis P. Starck, president, says in the annual report.
The bitter dispute seriously delayed exploration and development of the property. Terramar now holds 100% of the freehold right on the Reid and Evening Star mines and 14% together with a leasehold interest in the Central mine.
The settlement will give its former partners a sliding scale net smelter return starting at 3.5% until 75,000 oz gold is produced, increasing incrementally to 7% after 145,000 oz. The former partners will also receive $100,000(US), about one-third of which is repayable from the first smelter payments.
In recent months, Terramar has reorganized its management structure and the Reid mine project now will be handled totally in house. Sawyer Consultants, a subsidiary of the Concord Group (which controls Terramar) previously directed the Reid mine program.
A prime target is the Reid vein below the 800-ft level; previous operators exposed vein widths of up to 30 ft over a strike length of some 600 ft, Mr Starck notes, adding that Terramar “anticipates being in a position to make a decision as to its production potential within 15 months.”