Kilroy Mining Inc

Permission granted to local firm for medium-scale mining at Eagle Mountain

August 27, 2014 | By KNews | Filed Under News

The Guyana Geology and Mines Commission (GGMC) has granted a local company, Kilroy Mining Inc., a Medium Scale Mining Permit for a 250-hectare concession at Eagle Mountain, Potaro Mining District, in Region Seven.
According to an announcement by Goldsource Mines Inc., the 250-hectare portion is part of the Canadian company’s Eagle Mountain gold deposit located within its approximately 5,050 hectares prospecting licence (PL). The permit will allow for the mining of gold, diamonds, precious metals and precious minerals within the area.
Goldsource said that the Eagle Mountain PL is held by its 100%-owned subsidiary in Guyana, Stronghold Guyana Inc.
The Canadian firm said that a medium-scale mining permit is required under Guyana’s law to be held by a Guyanese national. Stronghold entered into agreements with Kilroy, a private “arm’s length” Guyanese company.
Stronghold and Kilroy will jointly operate the property and the latter has granted Stronghold the exclusive right to conduct mining operations on the property and other additional areas it has acquired.
“Stronghold will fund all expenditures on the property and receive 100% of all revenues, subject to applicable government royalties and a 2% net smelter return royalty to Kilroy as compensation for its participation.”
Ioannis Tsitos, Goldsource’s President said that “Following the recent announcement of the positive results of our Preliminary Economic Assessment for the Eagle Mountain gold deposit, we are extremely pleased with the grant of the permit. The project is now fully permitted for mining activities and ready for construction financing and subsequent Phase One development, as described in our News Release of July 31, 2014. The Company and its management are working aggressively with a staged production growth strategy to deliver real value to shareholders and to all other project stakeholders.”
As part of the agreement, Goldsource agreed to issue to Kilroy 250,000 common shares of the Company, subject to a 12-month hold period and approval of the TSX Venture Exchange.
Goldsource said yesterday that it is working aggressively to develop its advanced-stage, 100%-owned Eagle Mountain gold project in Guyana towards initial staged production in 2015.
The company said that it has an existing resource of 188,000 ounces and potentially up to “792,000 Inferred gold ounces, with strong potential to expand its resources.”
Since the closure of Omai Gold Mines a few years ago, Guyana has been without a large-scale gold mining company, but a rise in prices on the world market saw a rush by small miners which saw production reaching the Omai levels within the last two years.
Several foreign companies, including from Canada and Australia, have shown intense interest with the biggest being Guyana Goldfields and Troy Resources.

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