Wheaton sells Ketza River gold property to YGC

Junior gold miner Wheaton River Minerals (TSE) has sold its Ketza River property, near Ross River, Y.T., to YGC Resources (VSE).

In return, Wheaton will receive three million YGC shares, giving it a 48% stake in the company. Also, Wheaton will appoint three of YGC’s five directors.

Subject to a final feasibility study, YGC plans to use the 495-ton-per-day Ketza River mill to process ore from its Grew Creek gold property, 57 miles away by road.

Grew Creek, which can be mined via open-pit methods, contains 299,000 drill-indicated tons grading 0.324 oz. gold per ton. Metallurgical testing indicates the Ketza mill should recover about 93% of the gold. It is estimated that the mine will produce about 30,000 oz. gold per year for three years.

In addition to Grew Creek, the Ketza River property contains possible reserves of 209,000 tons grading 0.33 oz. gold.

Hemlo Gold Mines (TSE) has an option to earn a 60% interest in 252 claims and 64 mining leases at Ketza River. The option does not include the mill or known reserves.

In other news, Wheaton has established a $3-million demand credit facility in favor of its subsidiary, North American Metals (VSE), for the purposes of funding working capital and exploration at the Golden Bear Mine in northern British Columbia. The facility, which will bear interest at the prime rate, will be secured by the property and assets of North American.