Colorado-based USMX (NASDAQ) has exercised its option to participate in a joint venture with Excellon Resources (VSE) and Valdez Gold (ASE) on the Tombstone gold project in Arizona.
Excellon and Valdez each own half of the property. Excellon has an option to buy Valdez’s interest in exchange for up to three million Excellon shares. Under the agreement, USMX can earn a 65% interest by spending US$1.25 million on exploration and making pro-rata property payments.
Since January, USMX has spent about $250,000 on the project, drilling 63 holes. Results include 50 ft. at 0.062 oz. gold per ton and 2.2 oz. silver in Hole TR-38 and 30 ft. grading 0.19 oz. gold and 6.41 oz. silver in Hole TR-33. All mineralization encountered to date is at shallow depths and is amenable to open-pit mining, USMX reports. It is planning supplemental drilling to delineate minable reserves.
USMX also has a one-time right to acquire a 50% working interest in five additional properties held by Excellon and Valdez in the Tombstone area.
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