Further exploration of the Jones Hill volcanogenic massive sulphide deposit will be carried out by Aur Resources (TSE), which recently optioned the New Mexico project from Champion Resources (VSE).
Aur can earn a 51% interest by spending US$1.9 million over three years, and by purchasing 600,000 shares of Champion (together with 600,000 warrants) for $200,000. The company can earn an additional 19% interest by spending a further US$1.5 million by the end of 1996, and through share purchases worth $100,000 by the end of 1995.
More than US$13 million has been spent at Jones Hill by previous operators. The bulk of this work was focused on the upper zone which hosts preliminary reserves of 2.5 million tons grading 1.2% copper, 1% zinc and 0.1 oz. gold per ton.
The project also has a down-faulted lower zone that could be reached by a decline. This target has been tested by a line of eight holes across the plunge, giving a minimum dimension of 1,400 ft.
Champion President Michael McInnis said ongoing work will be largely directed at testing the down-plunge area of the lower target where gross metal values and copper-to-zinc ratios increase.
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