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Friday, 17th February 2006 (4170 views)

Canadian gold mining company Q-Gold Resources has finalised its purchase of the Foley gold mine in Ontario, which could produce 220,000 ounces of gold.

The deal included 16 Crown mining claims that cover 640 acres, bought from a private party for cash in June 2004. Q-Gold had an option on the claims resulting from a reverse takeover transaction completed in September 2005.

The historic Foley mine was active in the late 1890s, and produced 5,267 ounces of gold.

A survey of mineral deposits carried out by the Ontario Geological Survey in 2004 found that proven and probable gold reserves still in the Foley mine amount to a possible 440,000 tons of ore.

At a grade of 0.5 ounces of gold per ton, this translates into a possible 220,000 ounces of gold.

Last month Q-Gold revealed that a significant style of mineralisation had been identified next to its Golden Star Mine in the same area of Ontario.

Local exploration manager Jack Bolen said that "there's the potential for a lot of tonnage".

He added: "It was surprising how much gold and copper is in it."

 

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