Mtn. West/Homestake joint venture amended (January 11, 1988)

Changes have been made to a joint venture agreement between Mountain West Resources and Homestake Mining on the Elkhorn gold property located 22 miles south of Helena, Mont.

Under the original January, 1987, agreement, Homestake could earn a 50% interest in the property by spending $3 million(US) over four years and making annual payments of $100,000 to Homestake. The amendment provides that Homestake will pay $100,000 in January, but Mountain West will use the funds on an 8,000-ft drill program. Drilling will be completed by July and Homestake can decide then if it wants to proceed with the joint venture. If Homestake elects to proceed, it will spend a minimum $300,000 during the remainder of 1988.

Drilling will concentrate on the upper portions of the Tourmaline Queen and No 2 pipes.

Significant intercepts of mineralization were encountered in Homestake’s drill program last year. In the Plymouth No 2 pipe, hole P-85 intersected 196.5 ft grading 0.114 oz gold per ton, and hole P-88 gave 62 ft of 0.122 oz. Testing the Tourmaline Queen breccia pipe, hole P-86 intersected 36 ft grading 0.063 oz and P-90 intersected 20 ft of 0.414 oz.

Changes have been made to a joint venture agreement between Mountain West Resources and Homestake Mining on the Elkhorn gold property located 22 miles south of Helena, Mont. Under the original January, 1987, agreement, Homestake could earn a 50% interest in the property by spending $3 million(US) over four years and making annual payments of $100,000 to Homestake. The amendment provides that Homestake will pay $100,000 in January, but Mountain West will use the funds on an 8,000-ft drill program. Drilling will be completed by July and Homestake can decide then if it wants to proceed with the joint venture. If Homestake elects to proceed, it will spend a minimum $300,000 during the remainder of 1988.

Drilling will concentrate on the upper portions of the Tourmaline Queen and No 2 pipes.

Significant intercepts of mineralization were encountered in Homestake’s drill program last year. In the Plymouth No 2 pipe, hole P-85 intersected 196.5 ft grading 0.114 oz gold per ton, and hole P-88 gave 62 ft of 0.122 oz. Testing the Tourmaline Queen breccia pipe, hole P-86 intersected 36 ft grading 0.063 oz and P-90 intersected 20 ft of 0.414 oz.