Onweida’s Mexican Hat bet optioned by Placer Dome

Upon completion of the $525,000 exploration program, Placer will have the option to purchase an additional 600,000 Oneida shares at a price of $2.25 per share. On completion of the private placement, Placer would be vested with a 60% interest in the property.

Placer will also fund Sll exploration and engineering costs up to the feasibility stage. Then, after Placer makes a production decision, Oneida will have to decide if it wants to participate to its full 40% interest or be reduced to a 25% carried interest.

With funding in place, Oneida says Placer will begin a 15,000-ft reverse circulation drill program which will test two major targets. The first is a fault-hosted high grade zone. The second is a large tonnage, low grade gold zone north of the fault.

Drilling in the large-tonnage target area have yielded encouraging results. These include 60 ft grading 0.045 oz gold per ton and 10 ft assaying 0.053 oz. The intersections are within a much wider 405-ft section which averaged 0. et optioned by Placer Dome 01 o gold Oneid says.

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