Shallow drilling on the Buckhorn property in Nevada has returned several gold intersections for partners Equinox Resources (TSE), Pathfinder Resources and Cominco Resources International (TSE).
The results included a 65-ft. intersection from zero to 65 ft. grading 0.34 oz. gold per ton in Hole 93-1, as well as a 70-ft. intersection from zero to 70 ft. grading 0.14 oz. in Hole 93-6.
Pathfinder is earning a 53-80% interest by funding all of Equinox’s obligations until the start of production.
In a separate deal with Cominco Resources, Equinox has the right to boost its interest in the property to 65% from the current 23.56% by funding US$2.5 million in exploration.
On completion of the earn-in, Cominco Resources can either fund its 35% share of costs or dilute to a 5% net profits royalty.
In the event Cominco Resources fully funds its share of costs, it would own a 35% interest, Pathfinder would own 53% and Equinox would hold 12%. In the event Cominco dilutes to the 5% net profits interest, Pathfinder will own 80% and Equinox 20%.
Under its deal with Pathfinder, Equinox will participate fully in operating cash flow from a new mine at Buckhorn, with no provision for recapture of capital costs.
The initial round of drilling at Buckhorn was designed to test shallow feeder zones below the main open pits.
Buckhorn operated as an open-pit, heap-leach gold mine until Cominco Resources and Equinox suspended mining in 1991.
Ross Beaty, president of Equinox, noted that the recent drilling was done primarily to obtain structural information, as well as to test the continuity of the feeder zones.
Beaty said he is pleased that the drilling returned higher grades than anticipated but noted that the results of upcoming deeper drilling are more important.
The main interest in Buckhorn is its potential for hosting a high-grade, deep-seated gold deposit.
Pathfinder plans to conduct an airborne geophysical survey over the entire property and will proceed with a second round of deeper drilling before year-end.
Results from the 6-hole program are as follows:
Hole Interval Width Gold
(ft.) (ft.) (oz./ton)
93-1 0-65 65 0.34
93-2 0-25 25 0.037
93-3 0-10 10 0.075
93-4 0-60 60 0.041
93-5 0-25 25 0.052
93-6 0-70 70 0.14
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