Thursday, 18th October 2007 (1829 views)

Grandview Gold now holds a 51 per cent interest in the Red Lake Gold District's Dixie Lake gold property, following the successful fulfilment of terms set out in an options agreement with Fronteer Development Group.

The option agreement, which was originally signed in August 2005, stated that Grandview Gold would earn interest in the property following cash payments and share issues, as well as a detailed account of a completed exploration programme estimated to have cost $1.71 million (£836,300).

Fronteer Development Group has told Grandview that following the terms of the option agreement, it plans to dilute its participating interest in the Dixie Lake gold property from 49 per cent to 36 per cent.

Final assay results are being completed following a diamond drilling programme at the site that wrapped up last month, with further drilling scheduled for the spring and summer of 2008.

The Red Lake Gold District, located in northern Ontario, Canada, has produced a combined total of 30 million ounces of gold.

Grandview Gold holds interests in three gold properties in the district, including Dixie Lake.

 

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