According to Mark Jones, chairman of Crown, the properties have excellent potential for reserve expansion. The 1,500-acre Klondike property, 30 miles from Austin, is estimated to contain a geological drill-indicated resource of 400,000 tons grading 0.25 oz gold equivalent per ton. About 180 drill holes have been completed on this property to date, with the mineralization still open in two directions.
The Manhattan property, 50 miles by road from the Klondike property, is estimated to contain a mineral inventory of 100,000 tons grading 0.50 oz.
This 1,700-acre property is immediately adjacent to the Echo Bay/Homestake Manhattan mine and mill. High grade mineralization is reported to have been intersected on this property over a horizontal length of 600 ft and a vertical depth of 500 ft, with the mineralization open at depth and along strike.
To acquire the properties Crown transferred to Freeport a portion of its equity position in consolidated subsidiary Gold Texas Resources (VSE).
Crown and Gold Texas recently announced the execution of a definitive agreement that will result in Crown acquiring all the outstanding shares of Gold Texas. Under the proposal, shareholders of Gold Texas will receive 1.43 shares of Crown for each of the over 1.1 million Gold Texas shares not currently owned by Crown.
Jones said the main purpose of the reorganization is to increase the overall efficiency of the company. Crown and Gold Texas together have a 30% interest in the Kettle River project in Washington State that is expected to by brought into production by Echo Bay Mines next year. The companies also have share interests in a number of other properties in the western U.S.
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