Wednesday, 17th October 2007 (1464 views)

Reunion Gold has entered into an acquisition agreement with Laurentian Mountain Resources to gain whole ownership of the Lely gold project in South America.

The 96,500-hectare project, located in eastern Suriname, consists of a greenstone belt which displays similar geological characteristics to lucrative gold deposits in Guyana and Venezuela.

According to the terms of the options agreement, Reunion Gold will pay a total of $100,000 (£49,186) to Laurentian Mountain Resources over the first two years of the project life, increasing to $125,000 in the third year, $200,000 in the fourth year and $250,000 in all subsequent years until a full feasibility study has been completed.

In addition, the rights of exploration will be transferred once Reunion Gold invests $5 million on the exploration of the project.

According to Reunion Gold, the company plans to begin an intensive exploration effort at the Lely property, which has remained relatively unexplored with the exception of some historical artisanal gold mining in the project's north section.

Formerly the New Sleeper Gold Corporation, Reunion Gold is currently focusing its resources on exploring its Antino 1 gold project, also located in Suriname.

 

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