Malartic options key property between Doyon, Bousquet mines

The Ellison ground hosts possible reserves of 861,000 tons grading 0.2 oz gold per ton in the A zone which is open below 1,300 ft. A second zone at 1,000 ft hosts a wide core of high grading mineralization, Malartic says. Drilling in this zone has returned wide sections of 65 ft grading 0.26 oz gold.

Ownership of the claims is in dispute between the private company and Yorbeau Resources (TSE). Yorbeau has filed a statement of claim against the vendor claiming to have earned a majority interest in the Ellison ground under the terms of a 1985 joint venture agreement. If the vendor is unsuccessful in its defence, it will then retain a 41% net profits interest.

In consideration for the option, Malartic will pay all the vendor’s legal costs. On settlement of the court case, Malartic can exercise its option for 600,000 Malartic shares plus an additional share consideration if the claims host more than 170,000 oz of gold.

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