Placer Dome, Inco, Corona buy Musselwhite interest

Earlier this year, Homestake Mining (NYSE) concluded an agreement to purchase all of Esso’s properties for a total of $29 million, subject to rights of first refusal by various joint venture partners. At the time Homestake said it was very interested in Musselwhite, but recognized that several key properties in the Esso package could be acquired by other parties.

Esso sold its interest in Musselwhite for $19.5 million, bringing Placer Dome’s share up to 43%, Inco’s to 32%, and Corona’s to 25%. Placer Dome is operator for the project, which has drill-indicated reserves of six million tons grading 0.2 oz gold. But that estimate does not include results of the underground exploration program completed in March.

Placer Dome has confirmed that the 1989 surface exploration program “indicates good potential for increased tonnage” and it noted a full feasibility study should begin this fall.

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