An option on 30,000 acres of mineral holdings near Randsburg, southern California, was recently acquired by Glamis Gold (TSE) from Denver- based DRX Inc. Glamis notes that much of the land is contiguous to its Randsburg operations where company subsidiary Rand Mining is currently mining on the Lamont and Yellow Aster zones.
Glamis believes the Lamont zone continues on to the optioned property, with indications of the presence of more than one million tons of material grading 0.02 oz. gold per ton.
Rand Mining will have the exclusive option to explore the lands for five months in return for cash payments of US$50,000 per month plus a minimum exploration commitment of US$100,000.
On exercise, Rand can earn a 51% interest by paying DRX US$1.5 million, less the accrued monthly option payments to date. Rand must also commit to minimum work of US$500,000 and carry DRX through to a production decision. In addition, Rand’s interest in a given project can be increased to 60% by funding 65% of the capital and development costs.
Glamis’ financial position as at March 31 is excellent with working capital of almost $4.5 million and deferred revenue of $1.9 million.
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