Vancouver — A 1,200-metre drill program is testing the Quitovac gold project in Mexico’s Sonora state. The project is held jointly by
The program is operated by Copper Ridge, which is earning a 55% interest from CastleRock through payments and work commitments over five years. Copper Ridge can increase its stake to 75% by completing a bankable feasibility study.
The drill program is testing extensions of known mineralized zones, particularly higher-grade areas where previous drilling returned 7 grams gold over 20 metres and 9.9 grams gold over 23 metres. The follow-up drilling is designed to confirm grade and thickness, and to test for possible extensions.
By July, CastleRock expects to have acquired the Sierra Miranda copper mine, near Antofagasta, Chile, from a private owner. The underground mine currently produces about 20 million lbs. copper annually, using solvent extraction and electrowinning.
The purchase price includes a US$15-million payment upon closing, followed by a US$5-million payment due on the first anniversary of the closing date. The final payment, due one year later, depends on the price of copper but ranges from US$2 million up to US$6 million.
Sierra Miranda hosts reserves of 6.6 million tonnes averaging 0.9% copper within a larger resource of 25 million tonnes averaging 0.7% copper.
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