Proceeds from a private placement arranged by Arizona Star Resource (VSE) will finance feasibility work on the Cerro Casale deposit in Chile.
The deposit forms part of the Aldebaran property, which is held 51% by Arizona Star Resource and 49% by Bema Gold (TSE). A prefeasibility study outlined a minable reserve of 104 million tons grading 0.019 oz. gold per ton. Metallurgical test results point to a potential open-pit, heap-leach operation that could produce a minimum of 100,000 oz. per year at a cash cost of US$245 per oz. The full feasibility study is expected by April, 1996.
The property is in the northern district of Maricunga, 30 km north of the Refugio gold mine project, held 50-50 by Bema and Amax Gold.
Bema, Arizona Star’s largest shareholder and the manager of its affairs, has agreed to purchase a private placement of 2.5 million units of Arizona Star at 60 cents per unit.
Arizona has 27.8 million shares outstanding (32.4 million fully diluted), of which Bema holds 16%. Upon concluding the placement, Bema will own a 22.9% share of Arizona.
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