Golden Princess Mining has agreed to acquire a 55% interest in the Gold Cliff property near Angels Camp, Calif., about 80 miles from San Francisco. According to the company, “the economics of the property appear to be very promising either for heap leaching or as a conventional milling operation which should be highly profitable at a gold price of $450(US) per oz.”
The Gold Cliff properties, which are part of the historic Mother Lode mining district, are located approximately five miles north of Grandview Resources’ Carson Hill mine.
Golden Princess plans to initiate a development drilling program while permitting and metallurgical test work are under way. Recent work has demonstrated that both oxide and sulphide ores are amenable to cyanidation extraction techniques. An independent consultant has established in-situ reserves of 197,220 oz gold but Golden Princess has not released the tonnage and grade of the deposit(s) blocked out.
The option agreement will require Golden Princess to reimburse Vancouver-based Genco Industries all expenses incurred to date which total approximately $70,000(US). Commercial production must be achieved within three years and the company has to pay the original vendor $100,000 plus treasury shares valued at $150,000 at a price of 95 cents (C) upon formal execution of the agreement.
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