Volcanic Gold Mines Inc T.VG

RE:Toll Milling - Klondex Fire Creek

[MrGRP]

Also check out the 1st quarter MD&A

“On April 2, 2013 the Company entered into a toll milling agreement with Klondex Gold and Silver Mining Company Ltd., a subsidiary of Klondex Mines Ltd. (“Klondex”), to process ore from the Fire Creek Project (“Fire Creek”) at the Jerritt Canyon Mill located in Elko County, Nevada (the “Klondex Agreement”). Under the terms of the Klondex Agreement, Klondex will accept delivery of non-refractory gold ore produced from Fire Creek, located nearby in Lander County, Nevada, to the Jerritt Canyon Mill for processing. Klondex will pay the Company a toll milling fee of $148.50 per ton (including trucking) that will be adjusted on a quarterly basis to reflect any changes to input costs associated with processing the ore. The Klondex agreement includes an additional upfront pre-payment, to be deducted from future toll milling charges, to assist the Company in refurbishing the wet mill circuit at Jerritt Canyon. This agreement is structured in a similar manner to the Atna Agreement whereby all dore produced from the ore remains the property of Klondex throughout the process. The Company intends to partially re-open the wet milling facility at Jerritt Canyon in order to process this ore.”

This toll milling agreement is for the non refractory gold ore so it could be that Klondex is sending their Refractory Ore to Newmont ?

https://www.verisgold.com/s/FinancialStatements.asp