Greenstone ups stake in project

Greenstone Resources (TSE) can increase its interest in the San Andres gold project in Honduras to 92% from 81.75%.

The company began acquiring an interest in the project in February, 1994, since which time two drill programs have outlined a potentially open-pit reserve of 716,000 oz. in the Water Tank Hill deposit. Of these reserves, 544,000 oz. are classified as proven and probable.

In addition, Greenstone discovered the nearby Twin Hills zone, which has a drill-indicated resource of 300,000 oz.

The company is investigating the feasibility of an open-pit, heap-leach operation capable of producing 60,000 oz. per year. If their conclusions prove positive, such a mine could be up and running in 1997.

In order for Greenstone to acquire the 92% interest completely, it must make additional payments totalling US$4.2 million and issue another 450,000 common shares.