A budget of US$5.9 million has been set for the 1990 development program on the promising New World property, a gold-silver-copper prospect owned by Crown Butte Resources (VSE). The budget for development and exploration drilling will total US$4 million and include delineation and expansion drilling in and around known reserves as well as drilling on other targets on the property.
The additional US$1.9 million will be used for environmental and permitting activities as well as preliminary feasibility work. Crown Butte expects to be at final feasibility by April, 1991.
Geologic reserves were reported at the end of 1989 to total 4.64 million tons grading 0.17 oz. gold per ton (uncut), 0.72 oz. silver and 0.81% copper.
The project, in Park Cty., Mont., is being funded and managed by Noranda (TSE) which has a 23% equity interest in Crown Butte. By funding the project to feasibility and providing 25% of the subsequent development costs including working capital, Noranda will earn additional Crown Butte shares, bringing their position up to 60%.
Plexus Resources (TSE) owns about 17% of the 3.5 million shares outstanding of Crown Butte.
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