posted in:

Matachewan Consolidated Mines, Limited announces commencement of royalty from gold production

Tuesday, Nov 27, 2012

Matachewan Consolidated Mines, Limited (TSX VENTURE:MCM.A) ("Matachewan or the "company") is pleased to announce the commencement of actual royalties earned from gold production at the Young Davidson mine operations.

The company reports that approximately 47,000 tonnes of ore was processed from the Matachewan property during October 2012, recovering 2,300 ounces of gold, and generating an estimated royalty of $215,000 US.

Under the terms of the agreement dated June 1, 1979 as amended, with Aurico Gold Inc. (TSX:AUQ) ("Aurico"), Matachewan earns a base royalty of $1.105 US per tonne of ore mined and processed from the former producing Matachewan mine property, an additional sliding scale royalty is also earned if the price of gold exceeds $270 US per ounce. This amounts to 5% of the increase per ounce recovered above the base rate of $270 US per ounce, the price is based on the average quarterly price of gold sold on the free market during the quarter that the ore is processed.

The property is located in Powell and Cairo Townships, Larder Lake Mining Division, Ontario, and forms a portion of the Young-Davidson mine operated by Aurico. The Young-Davidson mine commenced commercial production effective September 1, 2012.

Richard McCloskey, President and CEO of the company said that based on production and price expectations the Company anticipates the royalty stream to have a significant impact on future income.

Source: Marketwire

posted in:

Other Mining News

Ore grades spike in North Raise area of LKA's Golden wonder mine 21-04-2014
Marathon completes successful sprite zone winter drilling program, Valentine Lake property 18-04-2014
Aureus Mining Inc. - appointment of MonuRent to provide and maintain fleet for owner mining operation at the New Liberty Gold Project in Liberia 18-04-2014
Vista Gold Corp. announces option agreement on the Guadalupe de los Reyes project 16-04-2014
Ivanhoe Mines' drilling program extends depths of rich zinc and copper zones at the Kipushi Mine in D.R. Congo 16-04-2014
Vorkutaugol to commission 11 new coal faces across its mines in 2014 16-04-2014
Vanstar updates on Liam drilling 15-04-2014
Lakeland Resources Inc. acquires 5 new uranium properties in the Athabasca Basin 14-04-2014
Comstock Mining provides update 11-04-2014
Sierra Mining Limited announces registration of scheme booklet 11-04-2014

Advertisers