Situated in Elko Cty., the project comprises 140 claims and is in the same regional structure that hosts the producing Jerritt Canyon gold mine.
Previous exploration identified numerous targets on Cobb Creek, including the McCall Creek zone, where combined oxide and primary resources are pegged at 3.2 million tonnes grading 1.5 grams gold per tonne.
To acquire the project, Geomaque must spend US$1 million on exploration over the next six years. Orvana retains a small royalty on any deposit found and will receive US$350,000 in cash, or the equivalent in shares, if one is advanced to production.
Exploration is to begin in the second quarter.
Geomaque owns and operates the San Francisco open-pit, heap-leach gold mine in northwestern Mexico and is developing the similar-type, Vueltas del Rio gold project in Honduras. Reserves at the latter stand at 5.1 million tonnes averaging 2.51 grams gold (T.N.M., Dec. 7/98).
In 1998, the San Francisco mine cranked out 59,200 oz. gold, or 6,050 oz. more than it did in 1997. Nearly half of this gain was achieved in the fourth quarter, when crushing capacity was boosted.
This year’s output at the mine is budgeted at 70,000 oz., of which just over 9% was realized in January. About 7.5 million tonnes of ore are currently under leach.
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