Beaver Creek acquires option in old producer

A privately-held Montreal firm, Beaver Creek Goldfields, has acquired from its major shareholder, the American company Beaver Creek Explorations U.S.A., the rights to an agreement with Mesa Silver Corp. of Grand Junction, Colo., regarding the Mollusk mine/Silver Mile project in San Bernardino Cty., Calif.

Under the agreement, Beaver Creek Goldfields may acquire a 60% interest in the project after spending a minimum $500,000 on exploration and development and electing to make a production decision. Part of that total, $100,000, has already been spent by Beaver Creek Explorations; the Canadian firm will repay its American shareholder.

The exploration program is designed to confirm tonnage and grades and to test the lateral extension of the former (mainly silver) producer, located about 55 miles southwest of Las Vegas, Nev. The company reports former production has indicated grades of 25-40 oz silver per ton and 0.03-0.05 oz gold. Drilling is under way and the program is scheduled for completion by the end of September.

Initial testing, the company reports, has indicated the ore can be heap leached with precious metal recovery rates expected to be 88% gold and 77% sil ver.

In other news, Beaver Creek Goldfields and Lansdowne Oil and Minerals of Vancouver are awaiting regulatory approval for their planned merger on a share-per- share basis. Beaver Creek Explorations in the U.S. will remain the controlling shareholder in the new company.