One company in junior mining sector still going the acquisition route to prosperity is Vancouver-based Engineer Gold Mines Ltd. (TSX-Venture:EAU), which announced Tuesday an agreement to acquire the Tag property, which adjoins its Engineer Gold Mine property.
This property can be found 30 kilometres west of Atlin, British Columbia, to the northwest, and six kilometres north of the historical Engineer mine workings. The 1,070-hectare Tag property contains an historical mineral resource estimate including 250,000 tonnes of 2.97 grams per tonne gold (g/t Au) (cut) and 12.09 g/t Ag (cut), indicated and 400,000 tonnes of 2.98 g/t Au (cut) and 9.91 g/t Ag (cut) inferred, using a minimum core length of two metres and a cut-off grade of 3.0 g/t gold equivalent (combined gold and silver values), calculated on silver to gold ratio of 59.927.
President Andrew H. Rees says, "The Tag acquisition will be an exciting development for the Company as it is a contiguous expansion of the north end of the Engineer Project. The significant exploration and development work already completed at Tag will provide a wealth of data to Engineer's technical team and immediately enhance the geological understanding of the Engineer Project.”
The news tickled the company’s stock, which raced ahead two cents, or 12.1%, approaching noon EDT on Tuesday, to 18.5 cents, on volume of 1.7 million shares.
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