Morgain options Mexican deposit

Toronto-based Morgain Minerals (VSE) has been granted an option to acquire a 100% interest in the Cuatro Hermanos property, a copper-molybdenum prospect southeast of Hermosillo in Sonora, Mexico.

Under the agreement, subject to a 15% carried net profits interest, Morgain must pay Hermosillo-based Minera Cobredura $88,000 over four years. Advance royalties of $30,000 must be paid on the fifth and subsequent anniversaries until commercial production is under way. The controlling shareholder of Minera Cobredura will receive 50,000 Morgain treasury shares. The property’s mineralized zone has been tested over 4.5 sq. km with 22 holes. Significant intersections include 52 metres grading 0.52% copper and 0.03% molybdenum and 24 metres grading 0.7% copper and 0.02% molybdenum. Morgain plans to complete a 25-hole, $500,000 drill program totalling 4,575 metres at the beginning of 1993.