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Reed sells Comet Vale - again

6th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Junior miner Reed Resources has accepted a A$2-million offer for its Comet Vale project from a private company.

The company has previously tried its hand at divesting the asset. In May last year, a transaction with Crest Minerals fell through.

The Comet Vale gold project includes the Sand Queen gold mine, which is currently on care and maintenance, and which holds a total resource of 534 000 t, grading 10.8 g/t gold, for 186 000 oz of gold.

The mine was placed on care and maintenance in May 2010, owing to Reed’s inability to negotiate a long-term milling contract.

The project area also includes several shallow prospects with a total resource of 320 000 t, at 2.4 g/t gold, for 24 600 oz of gold, adjacent to the existing infrastructure.

The miner on Thursday reported that the new transaction would see the company receive a nonrefundable deposit of A$100 000, and A$1-million on the completion of the transfer. A further A$900 000 would be paid in instalments.

The completion of the sale was expected to take place in the March quarter, while the further instalments would be received in June and September.

Edited by Creamer Media Reporter

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