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MOD earns further interest in Sams Creek

9th October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Junior MOD Resources has increased its shareholding in the Sams Creek gold project, in New Zealand, to 60%, after successfully completing the Stage 2 drilling programme.

Under an earn-in agreement with fellow-listed OceanaGold, MOD was required to complete an infill drilling programme to convert at least 55 000 oz of the one-million-ounce inferred mineral resource into the indicated category, supported by an independent assessment of the mineral resource.

MOD said on Wednesday that the revised Stage 2 mineral resource estimate for Sams Creek included a Joint Ore Reserves Committee-compliant resource of 575 000 oz, based on ten-million tonnes of ore, grading 1.77 g/t gold.

MOD MD Julian Hanna said that the company’s 60% interest in the project had been submitted for consent to New Zealand Petroleum & Minerals, and added that owner OceanaGold had lodged the formal transfer documents.

He added that earning a majority interest in Sams Creek represented one of the most significant milestones for MOD since the company negotiated the agreement in 2011.

“Having earned 60% of Sams Creek, we can now focus our efforts on the Stage 3 drilling programme, which aims to test for extensions down-dip and along strike from the main zone gold deposit,” Hanna said.

Edited by Creamer Media Reporter

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