General news Should go BMR set to earn 75% stake in old California

Situated 120 miles south of Las Vegas near Amboy, Calif., the mine workings are on a potential gold bearing structure with a strike length of over two miles. Open pit production was predicated on two open pits which extend for 1,000 ft along the structure, says BMR President Frank Varseveld. Under an agreement with Fischer-Watt Gold of Reno, Nev., BMR can earn a 50% stake in the property by spending $200,000 on exploration and issuing 50,000 shares. Shares of the company were trading recently at around 75 cents on The Alberta Exchange.

To maintain its interest, BMR must also issue an additional 100,000 shares in stages and spend at least $100,000 annually on exploration and development.

The agreement allows BMR to increase its interest in the project to 75% by paying Fischer-Watt $500,000. But under certain circumstances that fee may be reduced to $250,000.

“Subsequent drilling of approximately 13,000 ft has indicated the potential for a high grade target of 100,000 oz of near-surface gold reserves, grading approximately 0.08 oz gold per ton,” said Varseveld.

In addition, a larger open pit target that lies adjacent to the high grade target could contain at least 200,000 oz of gold mineralization grading 0.05 oz, according to the BMR president.

Expected to begin immediately is a 5,000-ft drilling program designed to give a more accurate reserve estimate on the high grade target.

In other news, BMR recently raised $393,000 by issuing 786,000 common shares via a private placement that included warrants entitling holders to an additional 786,000 common shares. Subscribers included a Swiss financial institution, according to Varseveld. –

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