Business
Veris Gold Enters Into A Toll Milling Agreement With Klondex Mines
VANCOUVER, April 2, 2013 /CNW/ - Veris Gold Corp. (TSX: VG) (OTCQB: YNGFF) (Frankfurt Xetr...
About this update from Volcanic Gold Mines Inc.
[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, April 2, 2013 /CNW/ - Veris Gold Corp. (TSX: VG) (OTCQB: YNGFF) (Frankfurt Xetra Exchange:\n NG6A) is pleased to announce it has entered into a toll milling agreement\n with Klondex Gold and Silver Mining Company Ltd., a subsidiary of Klondex Mines Ltd. (TSX:KDX), to process ore from the Fire Creek Project at the Jerritt Canyon Mill\n located in Elko County, Nevada. The Jerritt Canyon Mill is operated by\n Veris Gold USA Inc., a wholly-owned subsidiary of Veris Gold Corp. (the\n \"Company\" or \"Veris\").\n\n\nUnder the terms of the agreement with Klondex Mines Ltd. (\"Klondex\"),\n Veris will accept delivery of non-refractory gold ore produced from the\n Fire Creek Project, located nearby in Lander County, Nevada, to the\n Jerritt Canyon Mill for processing. Klondex will pay to Veris a toll\n milling fee of $148.50 (including trucking) per ton that will be\n adjusted on a quarterly basis to reflect any changes to input costs\n associated with processing the ore. The Klondex agreement includes an\n additional upfront pre-payment, to be deducted from future toll milling\n charges, to assist the Company in refurbishing the wet mill circuit at\n Jerritt Canyon.\n\n\nThis agreement is structured in a similar manner to the Atna Resources\n Inc. agreement announced on March 27, 2013 whereby all dore produced\n from the ore remains the property of Klondex throughout the process and\n the associated toll milling fee charged will be treated as a credit to\n Jerritt Canyon operating costs.  The Company intends to partially\n re-open the wet milling facility at Jerritt Canyon in order to process\n this ore.\n\n\nRandy Reichert, Co-CEO and COO of Veris stated, \"This second toll\n milling agreement adds to our third party ore processing revenue stream\n and provides an excellent additional source of ore as the Klondex team\n ramps up their mining operations into 2014. This agreement will further\n reduce our costs by making use of the excess capacity at the Jerritt\n Canyon Mill when we begin processing the Fire Creek ore in the third\n quarter of 2013. We look forward to working with yet another gold\n producing neighbour in Nevada.\"\n\n\nMike Doolin, General Manager of the Fire Creek project stated, \"I'm\n happy to report we continue to gain momentum to initial production via\n our bulk sampling program at th...