Taseko Mines (TSX: TKO; NYSE: TGV; LSE: TKO) has sold its Harmony gold exploration project on Graham Island, Haida Gwaii, British Columbia, to JDA Gold, a newly incorporated company controlled by JDS Energy and Mining. Taseko will retain a 15% carried interest in JDS Gold and a 2% net smelter return royalty.
Taseko purchased the Harmony project in 2001 and advanced engineering work for it until 2008. The project has a historical resource (not NI 43-101 compliant) of 22 million tonnes at 1.77 grams gold per tonne and 42 million tonnes at 1.41 grams gold using a 0.60 gram gold per tonne cut-off grade. In total there are an estimated 3 million oz. of gold in the historic resource.
With Taseko focusing its energy on construction and permitting the Florence copper project in Arizona, the company said it is not in a position to advance Harmony for several years.
“JDS Energy and Mining has a proven track record of developing mineral projects, and this transaction structure allows Taseko to participate in their success and create value from this asset in the near-term,” said president and CEO Stuart McDonald in a news release.
“With our engineering, permitting and mine construction expertise, we believe we can advance this project and create significant value for all stakeholders,” added JDS CEO Jeff Stibbard.
(This article first appeared in The Northern Miner)