An agreement has been signed between Calgary-based Golconda Resources (ASE) and Manville Sales whereby Golconda can acquire the Meadow Lake gold property in eastern Oregon. Manville Sales is a unit of Colorado-based Manville (NYSE).
Under the agreement, Golconda will spend US$1 million over seven years and produce a feasibility study, at which time Manville must elect to retain either a 40% working interest or a 5% net smelter return royalty on the property.
According to Golconda, Meadow Lake is a porphyry-hosted gold prospect with widespread gold mineralization occurring in altered and strongly sericitized granodiorite and quartz porphyry.
“Widespread gold values in the range of 0.010 oz. gold per ton to 0.040 oz., without base metal values, are characteristic of the mineralized parts of the porphyry system,” said Golconda President Guenter Liedtke.
In addition, vein type mineralization is found in the porphyry system with high-grade gold values of up to 0.850 oz. gold, several oz. silver and copper, lead and zinc values in the range of 1%. “These veins seem to post date the porphyritic gold mineralization,” said Liedtke, who claims that the area is relatively flat and therefore easy to explore.
Meadow Lake is the third eastern Oregon porphyry gold prospect to be acquired by Golconda since 1987. After drilling 55 holes on the Record property, the company is planning further exploration this year at record and the adjacent Grouse Creek property. Highlights from drilling at Record include 185 ft. of grade 0.086 oz. gold.
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