Silver Standard broadens northern Saskatchewan gold hunt
- 7 Oct 2016
- The StarPhoenix
- Postmedia News
Silver Standard broadens northern gold hunt
Four months after acquiring Saskatchewan’s only gold mining company, Silver Standard Resources Inc. is laying plans to look for more of the precious metal on a massive property next to its northern Saskatchewan gold mine.
The Vancouver-based company signed an option agreement with Eagle Plains Resources Ltd. to explore the 84,000-acre Fisher project adjacent to its Seabee gold operation, about 125 kilometres northeast of La Ronge, according to a news release.
Silver Standard chief geologist Carl Edmunds said in a statement that the Fisher property is part of the same geological formation as the Santoy Gap gold
“In general the project area is underlain by the same favourable host rocks and structural setting,” he said.
Under the deal, Silver Standard can spend $4 million on exploration over the next four years in exchange for a 60 per cent stake in the project.
The company will then have a one-time option to buy an additional 20 per cent for $3 million.
Silver Standard completed its friendly takeover of Claude Resources Inc. in May, paying the equivalent of $450 million for the Saskatoon-based company.
It also operates the Marigold gold mine in Nevada and the Pirquitas silver mine in Argentina.
The Seabee gold operation entered production in 1992 and consists of two producing mines: The Seabee Gold Mine and the newer Santoy Mine Complex. Silver Standard has a separate exploration program underway at the Santoy complex.
Shortly after the takeover, former Claude Resources CEO Brian Skanderbeg attributed the company’s recent successes to the strength and quality of the Santoy Gap gold deposit.