A joint-venture consisting of Mirage Resource (VSE), Bethlehem Resources (TSE) and Dejour Mines (TSE) will explore a gold mine project, El Dorado, in El Salvador.
Mirage negotiated an agreement to acquire the property from Zinc Metal, subject to a 3% net smelter return. The company must pay US$175,000 cash and spend US$800,000 on exploration.
Mirage assigned a 25% interest to each of Bethlehem and Dejour in return for reimbursement of costs to date and payment of one-third (from each company) of the cost of confirmation drilling.
El Dorado operated between 1948 and 1953, producing 2,254 kg. gold and 11,045 kg. silver from about 270,200 tonnes grading 9.46 grams gold and 54.17 grams silver per tonne. Production came from six main parallel veins developed over 800 metres of strike and four levels to a depth of about 130 metres. The mine was reportedly closed because of union problems and the only work performed since then consists of two holes drilled in 1975.
The drilling intersected 20 metres grading 15.85 grams gold and 4.39 metres grading 14.28 grams gold respectively, about 90 metres below the bottom of the mine.
An initial phase of confirmation drilling is planned at a cost of US$250,000. It will include five holes, each 300 metres long, to test about 450 metres of strike length below the underground workings.
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