Seville moving modular mill from Nevada to Lumby, B.C.

Vancouver-listed Golden Seville Resources this week announced it plans to move a gold ore processing mill from Fallen, Nev., to the Lumby gold property in south-central British Columbia pending completion of an option agreement with the property owners.

The Quinto Mining Corp., which owns a 50% interest in the property, has agreed in principle to allow Golden Seville to earn a 40% interest in the bet by building the mill.

Vse-listed Greyhawk Resources holds a 25% interest in the property and another Vancouver-based junior Willcrest Resources holds the other 25%. Quinto has offered to buy back their interests in the property. Neither company has yet replied to the offer.

The property, known as the Lumby Project, includes 70 sq km covering Saddle Mountain near Vernon, B.C. A total of 10 gold- bearing zones have been identified there according to Quinto. They are in various stages of exploration.

There is an old, 250-ton-per-day mill on the property; there are some underground mine openings and a full complement of underground mining equipment, according to a Quinto release.

But indications are there could be 500,000 tons of near-surface mineralization on the property which could be mined by open pit methods. Grades are 0.25 oz gold per ton, according to Golden Seville. The company will be sending a consulting geologist from mph Consulting of Toronto to the property to confirm these claims.

Cash-rich Golden Seville, which recently raised $6,375,000 for scientific research and experimental development through a limited partnership, is conducting metallurgical tests on a 500-lb sample of rock from the Lumby property in a pilot plant in Reno, Nev.

The company has contracted international engineering firm Bateman Engineers of Denver to dismantle a modular tank leaching mill located in Fallen, Nev., transport it to Lumby and erect it on the property.

The mill could potentially be in operation by this summer.

Golden Seville has 1.9 million shares outstanding, 750,000 of which are in escrow. They traded this week on the vse at about 87 cents .