Echo Bay Mines has budgeted $9.5 million(US) for exploration work on its Kettle and Key gold properties in Washington state this year. The company can earn a 60% interest for an expenditure of $10 million which should occur by mid-1988.
Crown Resource Corp. of Denver, Colo., and vse-listed Gold Texas Resources will each hold 20% at that point. The two companies will have to contribute slightly over $1 million each this year to retain their interest in the property.
The over-all exploration expenditure will involve the completion of a 3,600-ft decline and continued surface and underground exploration at Kettle, plus initial development work at Key.
Echo Bay is completing an in-house feasibility study for a combined Kettle-Key mining project. Its most recent estimate of proven and probable reserves for the two properties totals some 4.3 million tons grading 0.164 oz gold or 700,000 troy ounces. The grade has improved from the previous estimate (0.14 oz) because a higher grade zone was discovered in the Overlook deposit.
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