Orefinders seals the deal on Abitibi gold property.

Orefinders Resources closed its acquisition of the McGarry Mine and Larder-Lake project from Kerr Mines on Aug. 20.

The 681-hectare McGarry Mine and Larder-Lake project is in Virginiatown, east of Kirkland Lake, in the prolific Abitibi Greenstone Belt.

The McGarry Mine was last in production in 2013. Kerr Mines and Armstice had upgraded the surface infrastructure and conducted underground exploration, which had shown very encouraging grades.

The site contains a head-frame, shaft, hoists, offices and a core shack, all refurbished over the last decade. A highway runs through the property.

"We were able to acquire the McGarry Mine and Larder-Lake projects that were previously tied up in litigation and environmental issues and we have since come to an agreement with the province which effectively eliminates the issues impeding development of the region," explained Orefinders CEO Stephen Stewart in a news release.

A preliminary economic assessment from 2011 outlined a mineral resource of 447,000 tonnes, grading 7.89 grams per tonne (g/t) for a total of 112,000 gold ounces in the indicated category. There's an additional 157,000 tonnes grading 5.83 g/t gold for a total of 29,000 ounces in the inferred category.

Orefinders said McGarry contains numerous gold mineralized zones. Many have only been drilled to relatively shallow depth. Development work by the previous owners prepared the 325N Zone for production.

The McGarry property also hosts the Barber-Larder open pit which produced 6,700 ounces of gold for an average grade 4.1 g/t. To the west, the company said, there are numerous targets worth following up.

"With this acquisition, Orefinders has acquired a very...