A joint venture agreement between Anchor Gold and Greenstone Resources will fund exploration work on Anchor’s Payan placer gold project on the Magui River in southern Colombia.
Under the agreement, both companies will finance a $630,000(US) program designed to increase proven reserves leading to a production decision late in 1988. Greenstone, as operator, will earn a 50% interest by funding half the program and paying $100,000 to Anchor. Work will begin in February.
Proven and probable reserves have been calculated at 1.8 million cu yd grading 0.012 oz gold per cu yd. The companies hope to increase reserves to a target 9.5 million cu yd to justify production of around 6,536 cu yd a day for five years, or 20,000 oz gold annually. If a production decision is made, Anchor estimates it would cost $2.5 million to bring the property on-stream.
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