Having completed a due diligence review, Cornucopia Resources (TSE) has exercised its option to acquire the Mary-Drinkwater gold project near Silver Peak, Nev.
The company paid US$230,000 for the property and assumes a sliding-scale royalty ranging from 4% to 6%, depending on the price of gold. It plans to explore and develop the project over the next 18 months at an estimated cost of US$2.2 million. The work will include exploratory and definition drilling as well as forming a reserve model for a pre-feasibility study to be completed in 1994.
Based on drill results from some of the claims, Cornucopia has outlined a geological resource of 6.1 million tons grading 0.059 oz. gold per ton. This includes a high-grade area which contains an estimated 1.1 million tons grading 0.21 oz. gold using a 0.06 oz. gold cutoff.
Cornucopia says it is encouraged by the propertys resource calculations and production history of about 600,000 oz. gold.
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