In a news release today, Lake Shore said Franco-Nevada will pay $35 million for a 2.2% net smelter royalty from the sale of minerals from its Timmins West Complex in Ontario, Canada. Franco-Nevada is also spending $15 million to acquire 10.05 million Lake Shore common shares at $1.49 per share. The price is a 5% premium on the 10-day weighted average price.

The deal is expected to close at the end of February.

Lake Shore Gold says the investment will go towards growing production at its  mines, and completing a mill expansion to 3,000 tonnes per day. The company is in commercial production at the Timmins Mine, has commenced pre-production development at the adjacent Thunder Creek deposit, and is advancing an underground advanced exploration program at its Bell Creek Mine.

]]> http://www.houstongoldnews.com/gold/lake-shore-gold-franco-nevada-link-up-for-50-million-royalty-equity-agreement/feed/ 0 http://www.houstongoldnews.com/gold/volta-extends-gold-mineralization-northwards-at-kiaka-gold-project/ http://www.houstongoldnews.com/gold/volta-extends-gold-mineralization-northwards-at-kiaka-gold-project/#comments Mon, 16 Jan 2012 18:36:00 +0000 admin http://www.houstongoldnews.com/uncategorized/volta-extends-gold-mineralization-northwards-at-kiaka-gold-project/ Volta Resources (TSE:VTR) Monday announced drill results from nine holes as part of its on-going phase 3 program at its flagship Kiaka gold project in Burkina Faso. Volta said that the nine holes, comprising a total of 3,589.2 metres, confirm the…
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Volta extends gold mineralization northwards at Kiaka gold project

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Sept. 8, 2011) - Columbus Gold Corporation (TSX VENTURE:CGT) (“Columbus Gold“) is pleased to announce that it has entered into a drilling contract with Forage Performax Inc. of Val d’Or, Quebec, for an initial drilling program at its 1.9 million ounce Paul Isnard gold project in French Guiana. A track-mounted diamond core drill rig has already been shipped from Canada with a planned arrival at the project site, and commencement of the program, about early-October; in anticipation of a 15,000 meter drilling campaign.

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Columbus Gold Obtains Drill and Sets Drilling Schedule at 1.9 Million Oz. Paul Isnard Gold Project

• RCT-87 encountered 117.4 meters of 5.5 g/t gold between Ledbetter and South Pit in the newly designated Mustang zone.  This intercept includes an 11.6-meter zone of 29.1 g/t gold containing a 0.9-meter intercept of 266.3 g/t gold. Mustang begins at a depth of 268 meters with an extension demonstrating a new underground target;

Drilling beyond the limits of the currently proposed South and Ledbetter pits continues to identify robust mineralization in Mustang.  RCT-87 intersected multiple zones of mineralization beginning at 164 meters below surface, including 117.4 meters of 5.5 g/t gold. This zone is positioned approximately 180 meters below the current $950 reserve pit and within the saddle between South Pit and Ledbetter.  RCT-87 is mineralized within 23 meters east of DDH-396 (53.7 meters of 3.7 g/t gold and 45.3 meters of 3.0 g/t gold; released June 29, 2011) and 27 meters southwest of RCT-33 (33.5 meters of 4.0 g/t gold; released March 9, 2011).  RC-1816 (released September 7, 2010) intersected 77.7 meters of 8.0 g/t gold approximately 44 meters east of RCT-87.

As demonstrated by the Mustang zone, the grade and continuity between South Pit and Ledbetter is steadily increasing and may lead to the merging of the designed pits within this area.  Mustang, which has been identified by numerous holes and most notably RCT-87, remains an open pit target.  However, the extension of Mustang as it plunges to the northeast has been identified as an underground target and has the potential to develop into part of an underground plan that is being studied this year for Ledbetter, Snake, and Horseshoe.

Diane Garrett, President and CEO, commented: “RCT-87 at Mustang is the most significant drill hole since we had the Horseshoe discovery hole (62.5 meters of 9.6 g/t; released March 1, 2010). Although over 280,000 meters of exploration drilling has been completed to date by Romarco since acquiring Haile, the system continues to grow as a world-class ore body and still remains open in all directions and at depth. During the additional timeframe allowed under the permitting schedule, the Company will continue to add value to the project through an aggressive and increased drill program, underground studies and optimization of the mine plan”.

The mineralization at Haile remains unconstrained at depth and in all directions. Drilling is ongoing throughout the property to continue defining the shape and extent of the Haile mineralized system.

An update of additional recent drilling is provided below in the Appendix (click on link below)

Read the full news release

Plan view maps are available on the homepage of the Company’s website: www.romarco.com

Read the full news release here. Photo of Riscos de Oro Drill Hole RD10-001 is from Calibre Mining.
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Calibre drills 9.31 g/t gold and 336.06 g/t silver over 3.90 metres at the Riscos De Oro gold-silver property