NEVADA & THE WESTERN STATES — Deloro acquires ground

The California state lands commission has granted a prospecting permit to Deloro Minerals (DLO-A), which has staked a 480-acre area near the border with Nevada.

The property is within 5 miles of the Aurora, Bodie and Borealis districts of California and Nevada. Historically, these districts have produced 3.5 million oz. gold and more than 15 million oz. silver.

The permit area lies northwest of a 21-claim property that Deloro has already staked.

Also, the company can acquire 13 unpatented lode claims on the Nevada side of the border. Under the agreement, Paramount Gold, a subsidiary of Zenda Gold (ZNDA-C), will receive from Deloro US$470,000 in cash and 535,000 shares. Deloro has also agreed to spend US$1 million on exploration over five years.

Deloro must pay an additional US$530,000 in cash and shares after five years. Paramount retains a 5% net smelter return royalty on the claims.

The junior acquired both the permit area and the claims in order to explore the Golden Beauty vein. To date, little work has been completed on the vein, though the company believes potential exists to discover either bonanza-grade vein or bulk-minable mineralization.

Geologic mapping at Golden Beauty has located quartz stockwork zones and siliceous sinter deposits. At the Bodie district, stockwork zones were mined for high-grade mineralization, while, at Borealis, the sinters accounted for production of nearly 500,000 oz. gold.

Deloro has begun mapping and sampling at Golden Beauty, and further drilling is planned for this year.