KGHM mum on Cicada Ventures statement about Iron Mask

Posted on January 31, 2014 in Ajax // 0 Comments

NEWS — The company proposing an open-pit super mine on the city’s border isn’t commenting on a Vancouver firm’s announcement involving an agreement in principle on the historic Iron Mask property.

KGHM International’s external affairs manager Yves Lacasse declined comment Thursday and a spokesperson told The Armchair Mayor the only person who could respond is currently in Poland.

Mining in Iron Mask area goes back to 1890s. (Kamloops Museum photo)

Cicada Ventures, a Vancouver mining investment firm, issued a news release on the Stockwatch mining industry website headlined “Cicada to grant 80% NPI in Iron Mask to KGHM.”

The release is attributed to Sammy Cheng, CEO of Cicada Ventures.

“Cicada Ventures Ltd. has agreed in principal (sic) to a mineral property agreement with KGHM Ajax Mining Inc. with respect to the company’s wholly owned Iron Mask property,” states the release.

“The terms of the agreement are that in consideration of a one time payment of $1 million payable to the company upon completion, KGHM shall be entitled to earn an interest in the property.

“KGHM shall be responsible for all the costs associated with exploring and developing the Iron Mask property and for financing the development of the Iron Mask property to production. In doing so KGHM shall earn an 80-per-cent net profits interest in the property.”

An earlier press release from Cicada, in December, said that at that time it was in negotiations with KGHM and that the transaction was subject to regulatory approval.

Soil and rock sampling and surveying were carried out on part of the Iron Mask property in October 2010.

An engineering report describes the property as coming “within 200 metres of the Ajax proposed super-pit which integrates the formerly producing Ajax East and Ajax West mine from which production was terminated in 1997.”

It says the Iron Mask property includes nine claims on about 3,600 hectares.

It is not believed a mineral rights agreement would impact the Iron Mask Trailer Park on Lac le Jeune Road.

The original Iron Mask property was staked in 1896, with the first shaft sunk on the north side of Iron Mask Hill.