Lyon Lake active at Beta Vargas

A second phase of development work is being carried out at the Beta Vargas gold property in Costa Rica.

Lyon Lake Mines (ME) says the work will include trenching of the known orebody, which contains proven, probable and possible reserves of 1.7 million tons averaging 0.04 oz. gold per ton. This will be followed by construction of a mill and heap-leach pads, with startup scheduled for the first quarter of 1995.

Lyon Lake will also evaluate a 2-mile extension east of the deposit and a 3-mile westerly extension.

To fund the program, the junior is making a placement of units that could raise as much as $2.5 million.

Each unit, consisting of one common share and one purchase warrant, is priced at 35 cents. The purchase warrant entitles the holder to buy one common share for 40 cents until July 11, 1995, or for 50 cents between July 12, 1995, and July 11, 1996. As of July 28, the company had raised $605,000 by selling more than 1.7 million units.