Cyprus Gold options Tully Twp gold bets

Cyprus Gold Canada, a unit of Colorado-based Cyprus Minerals (NYSE), has optioned a parcel of promising gold claims in Tully Twp., Ont., about 25 miles north of Timmins, Ont. The first deal gives Cyprus the right to earn a 60% stake in 14 claims held by Gowest Amalgamated Resources (ASE), New Texmont Explorations (ASE) and Frankfield Explorations (ASE) in Tully Twp. The senior company can earn its interest by making cash payments of $800,000 and spending $4.5 million on exploration over a 4-year period. That interest rises to 70% if another $1.5-million cash payment is made.

Starting next month, Cyprus plans to drill test two deep gold zones on the Gowest property where an initial $350,000 program is planned. Previous drilling has yielded intersections of 0.14 oz. gold per ton over 26.5 ft. in porphyry, as well as 0.24 oz. over 35.2 ft. in altered tuff. The latter intersection, at a vertical depth of 1,500 ft., occurs in a tuff unit adjacent to an ultramafic volcanic horizon.

A second deal gives Cyprus the right to earn a 60% stake in another group of 22 claims held by Intex Mining (ASE), Frankfield and New Texmont. The latter agreement calls for cash payments of $550,000 and exploration expenditures of $4.05 million over four years. An additional 10% stake can be purchased for $1.75 million.