The Blue Moon project in Mariposa Cty., Calif., is one step closer to development. Owner Colony Pacific Explorations (TSE) recently optioned 50% of the property to LAC Minerals (TSE) in return for a total of US$11 million in expenditures. The first stage of the option agreement calls for LAC to pay Colony US$50,000, and complete a US$1-million surface program within six months. The objective of the surface program is to confirm the expansion potential of existing reserves.
Colony Pacific has been searching for financing for the Blue Moon project since 1989, after it completed a reserve calculation and obtained permitting for further work including underground development.
Probable and possible reserves were estimated at 3.8 million tons grading 7.96% zinc, 1.30% copper, 0.48% lead, 0.067 oz. gold and 2.61 oz. silver per ton.
If the surface program is successful, a second-stage program will follow including development of a 1,400-ft. shaft, the development of a crosscut and an exploration drift parallel to the mineralized zone, underground diamond drilling, bulk sampling and a full feasibility study.
The cost of the second stage is estimated at US$10 million.
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