Pegasus plans third phase of program at Talapoosa

Gold miner Pegasus Gold (TSE) plans to enter phase three of work at the Talapoosa property in Lyon Cty., Nev.

It is earning a 70% interest in Talapoosa from Athena Gold (VSE) by making payments totaling US$3.25 million and completing US$2.8 million in exploration.

Athena has received a US$250,000 payment from Pegasus as part of the third phase of the option. The option agreement stipulates that Pegasus must spend an additional US$1 million to bring total expenditures to US$1.8 million by March 9, 1994.

Athena is to receive a report, before June 10, on the recent second-phase work.

Pegasus has released neither the results of metallurgical test work nor a new reserve estimate based on drilling to date.

Estimates completed before Pegasus optioned the property put preliminary reserves at about 19.6 million tons grading 0.045 oz. gold and 0.6 oz. silver per ton based on a cutoff of 0.02 oz. gold.