The recent joint-venture agreement between BMR Gold (TSE) and Rea Gold (TSE) will lead to a 2-phase development and operation program at BMR’s Comstock gold project near Carson City, Nev.
Rea Gold will contribute up to US$2.5 million toward startup and operating costs in two phases of US$1.25 million each. An earlier story (T.N.M., Mar. 1/93) issue incorrectly stated that BMR would be contributing these funds to earn a 50% interest in the project.
Each company will be entitled to 50% of operating cash flow after Rea Gold recoups its initial US$1.25 million investment. Both companies will share in the costs of the second-phase feasibility study. If Rea Gold decides to proceed, it will contribute US$1.25 million for new leaching facilities at the North Comstock area.
The operating plan is to produce a minimum 40,000 oz. gold annually from heap-leach facilities, and, if feasible, develop and process potential higher-grade underground resources. BMR is also involved in four other mature gold projects in the western U.S.
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