High River to acquire Chilean gold project

Toronto-listed High River Gold Mines will earn a 67% direct interest in the Pastos Largos gold project in the Domeyko region of Chile.

Under an agreement with a private Ontario company, High River will operate the project. It can earn its interest by spending US$1.5 million, including an initial cash payment of US$180,000, to the property vendors. The private company will have a participating interest after High River completes its $1.5 million in expenditures. The agreement is also subject to High River completing a due diligence study by Jan. 31, 1995.

High River expects to begin exploring the property in December to investigate the economic viability of a large, open-pit operation.

Mineralization occurs within a near-vertical fracture zone that extends for at least 500 metres in length and 100 metres in width. During the late 19th and early 20th centuries, this zone was the site of 35 small mines which worked several narrow, oxidized, high-grade gold veins to a depth of 80 metres. Although samples of inter-vein rock taken in 1972 averaged 2.25 grams gold per tonne, the property has never been evaluated as a large-tonnage operation.