Partners size up La India

Vancouver — As part of a due diligence program, Newmont Mining (NEM-N) is exploring La India, an epithermal gold property wholly owned by Grayd Resource (GYD-V) in Mexico’s Sonora state.

The work includes airborne geophysical surveys, geological mapping and surface sampling. The prospect covers a 10-km-long-by-3.5-km-wide belt of highly altered volcanic rocks with associated high-sulphidation gold mineralization.

Once the preliminary program is completed, in mid-June, Newmont can elect to earn a 51% interest in the project by spending US$7 million on exploration over four years. The gold giant can boost its stake to 70% by completing a feasibility study.

Meanwhile, Gold Reach Resources (GRH-V) is gearing up to explore Grayd’s Seel copper-gold porphyry property, 100 km south of Houston, B.C.

A geophysical program will test along strike of an open-ended, 1.2-km-long induced-polarization anomaly previously outlined on the property. Diamond drilling will follow.

Gold Reach can earn 61% of the Seel project by spending $1 million on exploration; Grayd retains back-in rights for up to a 49% interest.