Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Maple Gold Mines (TSXV: MGM) has entered into an option agreement with Globex Mining Enterprises (TSX: GMX) regarding the past-producing Eagle gold mine, 60 km southwest of Matagami, Quebec.
Ownership of the mine will consolidate the historic high-grade Eagle-Telbel underground mines at the Joutel gold project. This is a 50:50 joint venture of Maple Gold Mines and Agnico Eagle Mines (TSX: AEM; NYSE: AEM).
The Eagle, Eagle West and Telbel underground mines and the Eagle West pit produced 1.1 million oz. of gold between 1974 and 1993 as part of Agnico’s first gold camp. The old production shaft at the site is about 950 metres deep. During the second-to-last year of operation at Eagle, Agnico drilled a hole that returned 10.2 metres of 10.2 grams gold per tonne.
Globex drilled six widely spaced holes between 2008 and 2015, including 12.4 metres of 2.9 grams gold per tonne beginning at 347 metres, including 4.8 metres of 5.4 grams gold per tonne.
Maple Gold will acquire a 100% interest in the Eagle property by paying Globex a total of C$1.2 million in cash and shares over five years and spending C$1.2 million on exploration over four years, which can be accelerated at Maple Gold’s discretion. Globex will retain a 2.5% gross metal royalty that can reduced to a 1.5% GMR in return for a cash payment of C$1.5 million.
The Joutel gold project also hosts several regional exploration targets along a 55-km strike length of the Casa Berardi deformation zone.
(This article first appeared in the Canadian Mining Journal)
