International Wayside Gold Mines Ltd.: Corporate Update on Proposed QR Mine & Mill Acquisition
04 June 2009 - 2:29AM
Marketwired
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
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: International Wayside Gold Mines Ltd. Andrew H. Rees
Director 604-669-6463 or Toll Free: 1-800-663-9688 604-669-3041
(FAX) www.wayside-gold.com
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