The company can exercise its option by paying owners Callahan Mining, U.S. Borax and Brinco $10,000(US) per month for six months, $990,000(US) at the end of six months, and a sliding scale net smelter return royalty.
The Van Stone property was operated by Asarco as a 1,100- ton-per-day open pit lead-zinc mine from 1952 to 1970. In 1971 Callahan acquired the property and with U.S. Borax and Brinco funded drilling and underground work.
Detailed feasibility studies for a 2,800-ton-per-day underground mine were also completed based on a diluted recoverable reserve of 6.5 million tons grading 4.1% lead- zinc. Equinox plans to complete an up-to-date feasibility study aimed at a lower tonnage, higher grade zone (8% zinc) within the deposit. The program will include surface drilling, permitting and mine design activities.
An undisclosed third party is to fund 50% of the purchase price of the mine and 100% of feasibility and construction costs.
If production appears warranted, Equinox said a rapid start-up would be feasible as all operating infrastructure such as a mill, an office, roads, water and tailing storage is in place.
The company described the potential for discovering new reserves as “excellent.” Equinox also holds a 100% leasehold interest in three other lead-zinc properties in the vicinity that it believes may offer potential for additional reserves should the mine be re-opened.
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