Jascan earns interest in Montana silver bet

Jascan Resources of Toronto has reached an agreement to earn an interest in a large silver/copper deposit in Montana.

The agreement requires Jascan and partners Pacific Coast Mines and Atlantic Goldfields to form a company called the Montana Silver Venture.

The new company will explore Pacific Coast’s Noxon property located 15 miles southeast of the Asarco’s Troy mine where exploration results have indicated reserves of 71 million tons grading 2.32 oz silver per ton and 74% copper.

Alberta-listed Jascan and Atlantic will each spend $3.5 million(US) on exploration and development each to earn a 22.5% participating interest. Pacific Coast which is an affiliate of United States Borax and Chemical Corp., owns the remaining 55% participating interest in the property and is the project operator.

Atlantic Goldfields was formed after the amalgamation of Choiceland Iron Mines and an Ontario numbered company.

According to Jascan, the deposit discovered and developed by Borax prior to the agreement, is open down dip and has excellent potential for additional reserves.

Jascan says the mineralization occurs in two separate mineralized horizons averaging approximatley 36 ft wide. Preliminary metallurgical testing indicates a recovery rate in the area of 90% to 98% in bulk flotatioin concentrates.

To finance its commitment, Jascan has negotiated an $8.75 million(C) private placement in Europe. It consists of $2.5 million units at $3.50 per unit. Each unit consists of one common share and a 1/5 of a warrant entitling the holder to acquire one Jascan common share at $4.50.

The private placement is expected to close soon.