Castle Silver Signs Provisional Milling Agreement: $CSR.V

cobaltCastle Silver Resources announced today the signing of a provisional milling agreement with Granada Gold Mine Inc., Frank Basa’s other junior resource company.  The provisional milling agreement permits the development of a flowsheet for the mill that can equally process the gold-bearing ore from Granada Gold Mine near Rouyn-Noranda in Quebec as well cobalt-silver-bearing mineralization from the advanced Castle Silver Resources’ property in Gowganda, Ontario.

Agreement Terms

The terms of the milling agreement provide batch processing a minimum of 600,000 tonnes of 4.0 grams per tonne gold ore from the open pit of the Granada Gold Mine over a three-year period with an option to treat a further 1.4 million tonnes of pre-concentrated waste rock. Initial metallurgical test work on the Granada Gold Mine’s waste rock, using a conventional coarse gravity process, recovered 70 percent of the gold from 0.5 gram per tonne waste rock to produce 4.5 grams per tonne gravity concentrate which will be further processed at the mill at Castle Silver Resources’ historic mill site.

Funding

The funding for the mill, which is to be installed at the historic Castle Silver Mine, will be financed by debt in the amount of US$20 million, which debt raise will be facilitated by a family office in the UK.

Processing of the Granada Gold Mine ore off-site will be treated as a custom milling agreement with a third party and will work within the parameters of the PFS completed June 19, 2014 whereby Castle Silver Resources will be the operator of the Mill. Granada Gold Mine and Castle Silver Resources share common directors and therefore are related parties.

Found this as well on their website today, interesting piece on the The Influence of the Cobalt Camp on the Mining Industry of Canada.

Do your own DD!

~DISCLAIMER~

This is not in any way investment advice nor any sort of stock recommendation. Please do your own due diligence and talk to a qualified investment advisor.

The contents of this article are for informational purposes only.  Nothing in this article, in any way whatsoever, should be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy, hold or sell any security. Note the inherent risks when investing in microcap stocks. Prior to making any investment decision, we recommend that you seek outside advice from a qualified and registered investment advisor.

Castle Silver Resources is a marketing client of an arm’s length party to one of the owners of the Stock Syndicate. One or more of the Stock Syndicate owners does own shares in Castle Silver Resources.

Leave a Reply

Your email address will not be published. Required fields are marked *