Taseko Mines (TSX: TKO; NYSE: TGB; LSE: TKO) has sold its Harmony gold exploration project on Graham Island, Haida Gwaii, B.C., to JDA Gold, a newly incorporated company controlled by JDS Energy and Mining. Taseko will retain a 15% carried interest in JDS Gold and a 2% net smelter return royalty.
Taseko purchased the Harmony project in 2001 and advanced engineering work for it until 2008. The project has a historical resource (not NI 43-101 compliant) of 22 million tonnes at 1.77 grams gold per tonne and 42 million tonnes at 1.41 grams gold using a 0.60 gram gold per tonne cut-off grade. In total there are an estimated 3 million oz. of gold in the historic resource.
With Taseko focusing its energy on construction and permitting the Florence copper project in Arizona, the company said it is not in a position to advance Harmony for several years.
"JDS Energy and Mining has a proven track record of developing mineral projects, and this transaction structure allows Taseko to participate in their success and create value from this asset in the near-term," said president and CEO Stuart McDonald in a news release.
"With our engineering, permitting and mine construction expertise, we believe we can advance this project and create significant value for all stakeholders," added JDS CEO Jeff Stibbard.