BMR finds new gold zone at America mine project

Some encouraging gold intersections were reported recently by BMR Gold (ASE) from its America mine project, 120 miles south of Las Vegas, near Amboy, Calif. Under an agreement with Fischer- Watt Gold of Reno, Nev., BMR can earn a 50% stake in the project by spending at least $200,000 to explore a gold-bearing structure that appears to strike for two miles. By making additional payments and issuing shares to Fisher-Watt, BMR can increase its stake to 75%.

Results from three holes, which included 80 ft. of 0.105 oz. gold per ton, indicate the existence of a second high-grade “West zone,” 800 ft. west and along strike from the Central zone, BMR says.

Drilled at 100 ft. spacings in a southeasterly direction, the three holes also yielded 70 ft. of 0.093 oz. and 45 ft. of 0.062 oz.

The property is known to host some 135,000 oz. at grade 0.14 oz. of reserves that are minable by open pit methods and, according to President Frank Varseveld, are sufficient to take the project into production. But he says drilling will continue between the two gently dipping zones for open pit design purposes.

“The ongoing drilling program has demonstrated that the central and west zones have potential to build additional reserves,” said Varseveld who believes that one million ounces could eventually be outlined.

So far, over 18,000 ft. of drilling have been completed to a maximum depth of 500 ft. While previous operators achieved recovery levels as high as 80%, BMR is conducting metallurgical tests on samples taken from the project. “Both oxide and sulphide material should be leachable,” said Varseveld.

The company is also hoping to raise $1.5 million via a European private placement to finance exploration but the current trading price of $1.25 and the resulting dilution may prevent BMR from securing the full amount initially.