Eagle Mountain Gold Corp. is working aggressively to commence production at mid-tier levels at its advanced-stage Eagle Mountain gold project in Guyana, South America. In strategic partnership with IAMGOLD, the high-quality asset has an existing NI 43-101-compliant resource of 188,000 indicated and 792,000 inferred gold ounces.
In mid-February, our strategic partner IAMGOLD indirectly doubled its ownership in our company and now owns 11%. This followed the exercise of an option held by Eagle Mountain to acquire the remaining 50% interest in the Eagle Mountain property from Omai Gold Mines Ltd., a 95%-owned subsidiary of IAMGOLD. The closing of this transaction gives Eagle Mountain 100% ownership of the property, establishes IAMGOLD indirectly as our largest shareholder and demonstrates their confidence in our team's ability to develop the project.
The resource at Eagle Mountain covers only 250 hectares of the 5,050-hectare property, providing excellent potential for expansion. The deposit remains open in three lateral directions and at depth, showing strong mineralization along its edges. The company also has an option to acquire up to 95% of Mowasi, a 17,000-hectare project directly adjacent to Eagle Mountain.
With gold starting at surface, Eagle Mountain is potentially suitable for low-cost, open-pit mining. The property has excellent access and is in close proximity to existing infrastructure, including existing roads, a small airport within four kilometres and waterways. The historic Omai gold mine, which produced over 3.7 million ounces of gold through 2005, is approximately 40 kilometres from Eagle Mountain. Guyana is a mining friendly, English-speaking democracy in South America.
Eagle Mountain Gold Corp. has an aggressive corporate development strategy. The company’s experienced board, management and operating teams are proven in making mining discoveries and achieving production.
Eagle Mountain is also pursuing small-scale production partnerships with upside potential. Its focus is on Guyanese properties that are currently producing gold on a limited scale so that cash flow could be leveraged to advance the flagship Eagle Mountain project. With discussions and legal underway, the company is targeting its first co-production and income in 2013.
Eagle Mountain Gold Corp.’s shares currently trade on the TSX-V under the symbol Z, on the OTCQX as EMGCF and in Frankfurt as E9X1.