Crown Res. gains option on Mexican property

Crown Resources (CRRS-Q) has agreed to buy the Magistral del Oro property in Durango state, Mexico, from Real del Monte Mining (RMM-T).

Crown can purchase the property by spending US$2.45 million on exploration over three years.

Magistral del Oro covers 14,000 acres where past operators mined 600,000 oz. Crown will target a series of sub-horizontal veins measuring more than 3,000 ft. long and up to 300 ft. wide. The company also believes the property has potential for hosting disseminated bulk-minable mineralization.

Crown made an initial cash payment of US$50,000, whereas the first year’s work commitment amounts to US$200,000. Crown plans to drill the property within six months.

Real del Monte retains a sliding royalty ranging from 3% at gold prices below US$325 per oz. to 5% at prices higher than US$375 per oz.

In other news, Crown has won a second court victory for the Crown Jewel project in Washington state. The state’s supreme court dismissed an action filed by an environmental group, the Okanogan Highlands Alliance, ruling that the county health department acted properly in not requiring the project to obtain a solid waste permit.

The project had won an earlier victory, where the U.S. federal court affirmed the adequacy of the final environmental impact statement and the record of decision.

Crown holds a 46% interest in the Crown Jewel project.