A letter of intent with two Russian companies sets the stage for Rux Resources (RUXR-c) to acquire a 49% interest in the Vorontsovsk gold deposit situated 400 km north of Yekaterinburg, Russia.
Previous work on the property includes more than 1,500 vertical drill holes on a 40-by-20-Metre grid. This work outlined proven and probable reserves estimated to total 18.4 million tonnes grading 5.3 grams gold and 7.4 grams silver per tonne.
Rux anticipates that the project could produce in excess of 200,000 oz. gold annually by open-pit mining at a cash cost of below US$200 per oz.
The agreement calls for Rux to pay US$200,000 for a 12-Month period of exclusivity, during which it will receive and examine all information pertaining to the project.
During the period, the company must examine the social aspects of project development and complete the final geological reports for the project. It also must prepare maps and preliminary layout plans for the project and prepare a scoping study.
Once the period of exclusivity expires, Rux will have the right to acquire a 49% interest in return for a series of payments that will be based on the progress of the project review.
Rux is involved in other gold projects in Russia, as well as in Uzbekistan.
The company has 22.9 million shares outstanding and is a majority-owned subsidiary of William Resources (WIM-T).
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