TSX-V-listed African Metals Corporation (AMC) has entered into an agreement to acquire a majority interest in the Silver Bell – St Lawrence gold project, in the Virginia City mining district, in Montana, in the US, from Frederick Private Equity Corporation.
AMC may initially earn a 51% interest in the project by making yearly $10 000 option payments and spending $1-million on exploration within four years, with a minimum exploration expenditure of $200 000 to be spent in the first year.
The project comprises a 390 acre claim package, with two past producing gold/silver mines – Silver Bell and St Lawrence – which were operated in the 1980s.
Historical production records from St Lawrence suggested average grades of 0.22 oz/t of gold and 3.8 oz/t of silver, while data from Silver Bell suggested average grades of about 0.2 oz/t of gold and 15.1 oz/t of silver.
The shafts for each of the former mines are located 3 600 ft apart and the exploration hypothesis is that the two mines shared mineralised systems that may, in part, be contiguous. Surface mapping and geophysical surveying by AMC support this initial hypothesis and may indicate extension of the vein system farther east along strike from the St Lawrence mine.
Meanwhile, in January, AMC had completed a sale of all its assets, as approved by a special resolution of its shareholders, to settle debts and liabilities.
The company then announced its intention to use the sale proceeds to reinstate the company’s corporate standing, bring its books and records back to good order, hold an annual general meeting of shareholders and complete all necessary steps to apply to have its current cease trade order, dated December 1, 2016, revoked.
Once the company’s debts were settled, it planned to use the remaining sale proceeds of around $1.6-million to seek out business opportunities.
AMC said that the Silver Bell – St Lawrence gold project should put the company back in business.