Joint-venture partners Mill City Gold Mining (VSE) and MacDonald Mines Exploration (CDN) can earn a combined half interest in the Florencia-Jobabo gold concession in Cuba.
The vendor, Geo Minera, has stipulated that the companies can do so by carrying out an exploration program before July, 1995.
Mill City can earn its 25% share by spending US$850,000 on a work program that includes geophysics and diamond drilling.
The junior has also entered a joint venture with Pandora Industries (VSE), whereby it can earn a half interest in the Monterde gold property in Mexico’s Chihuahua state. To do so, it must spend US$1 million, before March 31, 1997, on exploration and development. (Mill City is responsible for making all cash payments under the existing property option until March, 1997.) Exploration will focus on a major shear zone that the companies believe is amenable to open-pit mining and heap leaching. Previous production, up until 1945, included 100,000 tons averaging 0.5 oz. gold
per ton.
Preliminary exploration will begin shortly, to be followed by reverse-circulation drilling.
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