An option agreement sets the stage for Coeur d’Alene Mines (CDE-N) to acquire a producing gold mine next to its El Bronce operation in northern Chile.
In the meantime, the company is buying ore from the underground mine for processing through its mill at El Bronce, a 60,000-oz.-per-year producer.
To acquire the Boton de Oro mine, Coeur d’Alene must pay US$2.5 million and spend $500,000 on exploration. The company has already started a work program at Boton de Oro, testing mineralization which is believed to contain the same vein systems as El Bronce.
Boton de Oro, which is currently producing about 6,000 oz. gold annually, hosts an underground gold resource of 250,000 contained ounces.
A feasibility study is incorporating Boton de Oro mineralization into El Bronce’s operations. Coeur says the project will add to its already-sizable land position in the area, situated 90 miles from Santiago.Correction VenCan Gold (VCG-M) is being sued by Extender Minerals for failing to grant Extender its alleged right of first refusal for underground development work at the Edwards mine near Wawa, Ont. Incorrect information appeared in our Feb. 3 issue.
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