British exploration company Sunrise Resources PLC has chosen not to extend its option to purchase a 100 per cent interest in the Long Lake gold mine in Sudbury.
The company made the announcement in an April 26 news release. With the notification, the option agreement is terminated and no additional option payments will be made.
In the release, the company said its decision was made after evaluating the results of work carried out over the last two years and in order to focus on the company's Derryginagh barite project in Ireland and Cue diamond project in Australia.
“The company considers that its work programs have adequately tested for extensions to the gold mineralization previously mined at Long Lake,” the release indicates. “Whilst there is potential for nickel-copper and PGM mineralization to be discovered on the western side of the claim block, this requires a more grassroots exploration program, and targets are not sufficiently advanced to justify the option payments becoming due in May this year, or the accelerated exploration expenditures that would be necessary to justify exercise of the option when due in May 2013.”
Under the agreement, the company had the option to acquire a 100 per cent interest in the property by paying $575,000 over three years, covering $500,000 in exploration costs and issueing up to five million, five-year share warrants.
The claim block comprises 23 contiguous claims covering 40.3 square km and was recently expanded to include the Long Lake Gold Mine which was previously not open to staking.
The open-pit mine produced 57,000 ounces of gold from more than 200,000 tonnes of ore with an average grade of nine grams per tonne. It was mined from 1910 to 1916 and 1932 to 1939.
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