GOLD: Snow Lake project sold to Liberty Mines

MANITOBA – Liberty Mines of Toronto is buying the Snow Lake gold project in the northern part of the province from QMX Gold Corp. for a cash price of $20 million. Closing is anticipated near the end of November 2013.

The Snow Lake property has proven and probable reserves totalling 3.5 million tonnes at 4.04 g/t Au or 451,900 contained oz of gold, according to the 2010 feasibility study. Measured and indicated resources are 5.5 million tonnes at 4.14 g/t (728,000 oz), and the inferred resource is 2.4 million tonnes at 4.43 g/t (336,700 oz).

The feasibility study estimated pre-production capital expenditures to be $40.8 million that will be paid back over 1.7 years. The mine is expected to average 83,000 oz of gold a year for five years at a recovery of 93.3% Au. The accumulated pre-tax cash flow will be $140.7 million.

Liberty Mines will now own two mills – the 1,500-t/d Redstone mill in Timmins, ON, and the 2,150-t/d Snow Lake mill in Snow Lake, MB.

Some information about the Snow Lake mine is available at QMXgold.ca, but more will undoubtedly be posted soon at LibertyMines.com.