Margaux options Cassiar project from Wildsky Resources

BRITISH COLUMBIA - Wildsky Resources of Vancouver and Margaux Resources of Calgary have signed a letter of intent covering Wildsky's Cassiar gold project 105 km south of Watson Lake. Wildsky will grant Margaux an option to acquire all of the common shares of Cassiar Gold Corp., a subsidiary of Wildsky.

Margaux will issue 58.2 million common shares to Wildsky at a deemed price of $0.08 per share for a total consideration of approximately $4.66 million. Margaux must also spend $400,000 this year at Cassiar. Wildsky is also being granted a 30% net profit interest on all minerals processed from Cassiar's TM No.1 tailings pond on the Cassiar property. Wildsky will also be allowed to appoint up to three directors on the Margaux board over time.

High grade gold from the Main (Erickson) mine, part of the Cassiar gold project. (Image: Margaux Resources)

The Cassiar gold project produced about 350,000 oz. of gold from 920,000 tonnes of ore with an average grade of 11.9 g/t gold from 1979 to 1997 in a number of mines and mills under different owners. The property was subsequently amalgamated.

The project includes all areas of historical production (primarily from underground mines), a permitted 270 t/d flotation and gravity mill, surface buildings, a tailings storage facility and a 30-person camp with grid power. The site is accessible by road.

Details of the agreement are available at www.MargauxResources.com or www.WildskyResources.com.

This story first appeared on Canadian Mining Journal.