International Wayside Gold Mines Ltd.: Corporate Update/Mine & Mill Acquisition
posted on Jun 03, 2009 11:39AM
Edit this title from the Fast Facts Section
|June 3, 2009|
|International Wayside Gold Mines Ltd.: Corporate Update on Proposed QR Mine & Mill Acquisition|
|VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 3, 2009) - International Wayside Gold Mines Ltd. ("Wayside") (TSX VENTURE:WYG)(FRANKFURT:IWUB) is pleased to announce on June 1, 2009, Cross Lake Minerals Ltd. ("Cross Lake") completed the closing conditions of the plan of compromise and arrangement (the "Plan"), including obtaining final BC Supreme Court approval, thus allowing Wayside to proceed to enter into an agreement ("the Agreement") first announced on February 04, 2009 and updated April 9, 2009 whereby Wayside will purchase the QR Mine and Mill. Completion of the Agreement is subject to the satisfaction of a number of conditions including, but not limited to, completion of due diligence and obtaining the necessary shareholder, regulatory and Court approvals.
The 900 tonne per day QR Mill, which was fully operational until February 2009 (now on care and maintenance), is a CIP mill designed for an output of 70,000 ounces of gold per annum for that location. The mill is located 110 km by road from Wayside's Cariboo Gold Project and proposed Bonanza Ledge Mine. Following a positive feasibility study in 1994, Kinross Gold Corp. constructed the QR Mill with capital costs estimated at over $40 million.
Cross Lake commenced operations at the QR Mine in 2007 after spending over $34 million in the preceding 24 months on project acquisition ($4.3 million), exploration & development ($20 million) and refurbishing the mill facilities ($10.3 million). Cross Lake expended an additional $3 million on asset retirement obligations, including having BC Hydro bring three phase power to the project. It is Wayside's objective to process material from its proposed Bonanza Ledge Mine (subject to receipt of all necessary permits) at the QR Mill, in addition to recommencing operations at the QR Mine.
The Company initiated operations in the Cariboo District in 1994 and since that time has focused on the exploration and development of its gold properties. Mineral tenures in the Historic Cariboo Goldfields encompass approximately 1,065 square km (106,484 hectares) over a 60 km long by 20 km wide belt. In the Barkerville Gold Camp, 101 creeks have reported placer gold production. Recorded gold production from the area totals more than 3.8 million ounces, including an estimated 2.64 million ounces from placer mining and 1.23 million ounces from lode mining.
ON BEHALF OF THE BOARD OF DIRECTORS
J. Frank Callaghan, President and CEO