Cominco Resources options X-Cal’s Eureka gold project

Partners Cominco Resources International (TSE) and X-Cal Resources (VSE) will soon begin drill-testing the Eureka gold project in Nevada.

Cominco will earn an initial 60% interest by paying US$130,000 cash over five years and spending $500,000 on exploration. A further 10% can be earned by the delivery of a feasibility study.

X-Cal will then have the option of either retaining a 30% working interest or reverting to a 4% net smelter return.

Work on the project, which is on the Battle Mountain Trend, returned up to 0.07 oz. gold per ton in rock samples in several locations.

The property includes an overburden-covered area with coincident soil geochemical and geophysical anomalies.