Exall and Betchel ink deal

Betchel and Exall Resources (TSE) will carry out a feasibility study at the latter’s Santo Tomas copper-gold project in Mexico’s Sinaloa state.

The deposit, currently estimated to contain 7.4 billion lb. of copper with significant gold and silver credits, remains open, and Exall maintains that reserves could be significantly increased with minimal additional drilling.

Betchel will complete the $1.5-million study and, if results warrant, the companies would negotiate a “lumpsum-turnkey” contract to construct mine and mill facilities. Betchel would then build the plant under a fixed-price arrangement.

Subject to negotiations, Betchel Financing Services could assist Exall in obtaining project financing. It is suggested that Santo Tomas could yield 66,000 tons of copper annually, with gold and silver credits expected to cover most mining costs.