Salt Lake City-based Kennecott Exploration has drilled six widely spaced HQ holes (2.5 inches in diameter) on a gold-copper property in Honduras.
The 52-sq.-mile concession is held by Milagro Minerals (VSE). The holes range in depth from 390 to 490 ft. and assay results are pending. Drilling will resume shortly, with additional holes planned for the Maculizo and Zapotal areas. In addition, Kennecott plans to ship a large bulk sample to the U.S. for testing.
The major can earn a 60% interest by delivering to Milagro a full feasibility study and paying US$1.5 million over two years. It can earn an additional 10% by paying Milagro another US$8.25 million and advancing half of Milagro’s financial obligation towards construction of a production facility. This latter option must be effected within 90 days of completing the feasibility study.
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