Cogema enters option agreement with Eastfield at Spanish

A recent agreement between Eastfield Resources (VSE) and Cogema Canada gives Cogema the right to earn a 51% interest in the Spanish Mountain property in northern British Columbia.

Cogema can earn the interest by spending $1 million and making cash payments totalling $300,000 by Dec. 31, 1997. Cogema has not released plans for its 1993 program on the property.

As part of the earn-in agreement, Renoble Holdings will retain a previously negotiated mining lease on the property until Aug. 1, 1994. The lease stipulates that Eastfield receive 50% of net revenues from Renoble’s operations on the property.

Renoble extracted about 750 tons of gold-bearing quartz vein material which will be processed at the Premier mine near Stewart, B.C. in March. The company also stockpiled placer material from the property and nearly completed construction of a gold recovery plant before winter conditions shut down operations.