Canada-based Orefinders Resources has completed the acquisition of the McGarry Mine & Larder-Lake project in Virginiatown, Ontario, from gold development and exploration company Kerr Mines.
As part of the deal, Orefinders offered the purchase consideration of eight million common shares to Kerr Mines, formerly known as Armistice Resources.
The McGarry Mine & Larder-Lake project is located within the Abitibi Greenstone Belt and spread across 3km on the Cadillac Larder-Lake Break gold structures.
The property contains 46 patented mining claims and five mining licences of occupation. It also features infrastructure such as a head frame, shaft with compartments, hoist, offices and a fully functional core shack for on-site operations.
Orefinders chief executive officer Stephen Stewart said: “We were able to acquire the McGarry Mine & Larder-Lake projects that were previously tied up in litigation and environmental issues and we have since come to an agreement with the province, which effectively eliminates the issues impeding the development of the region.
“With this acquisition, Orefinders has acquired a very high-grade resource, which has substantial exploration upside. We’ve also acquired the data from over 100,000m of drilling along with substantial geophysics.
“In the near term, we will be releasing our new interpretations, geological model and exploration plan for this asset and others. This is the type of acquisition that falls directly in line with our philosophy of finding new deposits on old mines.”
As outlined in a PEA study in 2011, the McGarry property features a total of 112,000oz of gold in the indicated category and an additional of 29,000oz in the inferred category.
The mine was in production from 2013 through underground workings and an ongoing underground exploration by Kerr.
Orefinders also expects significant potential at the McGarry mine as it hosts numerous gold mineralised zones, many of which have been drilled to relatively shallow depths.