Cyprus Amax Minerals (CYM-N) has entered into a joint-venture agreement with Vancouver-based junior Jaba (JBA-A) on the Mammoth Wash copper project in southern Arizona.
Mammoth Wash is situated south of the Silver Bell copper mine (operated by Asarco) and is believed to be the faulted half of that mine’s North Silver Bell deposit.
Cyprus can earn a half-interest in the 4,586-acre property by spending US$2 million on exploration, including 6,000 ft. of reverse-circulation drilling within the next four months, and paying Jaba US$200,000 over the next four years.
Cyprus can earn an additional 20% for US$1 million if it completes a bankable feasibility study within five years; if the study is completed in the sixth year, the 20% will cost Cyprus US$2 million.
Meanwhile, Jaba announced that Vancouver-based Valerie Gold Resources (VLG-V) has signed a letter of intent to joint venture Jaba’s East Silver Bell property.
Valerie can earn a 60% interest in the 8,920-acre property by paying Jaba just over US$400,000 over four years and spending US$4 million on exploration, including 4,000 ft. of drilling within the first year.
Valerie can earn an additional 10% interest by completing a bankable feasibility study, arranging financing and paying Jaba US$5 million.
>From satellite imagery and extensive geophysics, Jaba believes that Mammoth Wash contains a porphyry copper target and that East Silver Bell could host as many as four such targets.
Elsewhere in Arizona, Jaba and joint-venture partner Phelps Dodge (PD-N) have undertaken an initial 2-hole test of the Hay Mountain copper property. Drill results are expected shortly.
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