Canyon and Homestake enter JV in Nevada

Northwestern Nevada is the site of new joint venture agreement between Canyon Resources (NASDAQ) and Homestake Mining (NYSE).

The Mountain View gold project, currently held by Canyon, is near the town of Gerlach. In 1993 and 1994, Canyon discovered significant gold mineralization on the property, and delineation drilling has so far outlined about 19.5 million tons grading 0.027 oz. per ton.

The deposit, concealed beneath 100-600 ft. of alluvial gravel, contains a silicified high-grade zone with grades of 0.1 to 0.2 oz. per ton. It is still open along strike and at depth, and the exploration potential for additional high-grade mineralization is considered excellent.

Homestake will spend US$4 million and produce a feasibility study to earn a 51% interest in the joint venture and become operator. It also has the right to up its interest to 60% under certain circumstances.

Exploration expenditures for 1995 are set at US$300,000.