Mining firm buys into golden area


Thunder Bay-based Premier Gold Mines Ltd. has signed an agreement with Newmont Mining Corp. to acquire a 100-per-cent interest in the Cove-McCoy Gold Properties located along the Eureka-Battle Mountain Trend in Nevada.
Under the agreement, Premier will make payments to Newmont over 18 months equal to $21 million (US), of which $15 million will be paid on signing, and will transfer to Newmont all property that comprise Premier’s South Carlin Project.
The Cove-McCoy properties contain 31,000 acres in the heart of one of the world’s most productive gold districts, Premier says.
Gold mines in the area have produced about 3.3 million ounces of gold and 110 million ounces of silver between 1986 and 2006.
“Terms of the agreement support a common sense first step toward building a long-lived gold and silver-producing asset that is very attractive for our shareholders,” Premier Gold president Ewan Downie said this week.
“This important acquisition secures for Premier a 100-per-cent interest in a substantial and complementary land package located in the heart of one of the world’s most prolific gold districts.”
Premier is also working on developing a gold mine at its Hardrock Project near Geraldton and is currently conducting an underground exploration program from a haulage drift in Red Lake on the Rahill-Bonanza Project. Premier Gold holds a 49 per cent interest in the Rahill-Bonanza property while Red Lake Gold Mines has 51 per cent.