Placer Dome finances metallurgical testwork at J&L

Placer Dome Inc. (TSE), North America’s second largest gold producer, recently agreed to invest $500,000 to advance metallurgical testwork through the purchas e of 270,000 Equinox shares at $1.85 per share. Placer Dome was also granted a p riority right to future J&L-related financings.

Equinox President Ross Beaty said the funds will be used to complete a pilot plant metallurgical program at Lakefield Research on a 300 tonne bulk s ample coll ected from the property earlier this year.

Equinox has an option to earn a 70% direct and indirect interest in the property. The remaining interest is held by Pan American Minerals Corp. (TSE) which is also managed by Equinox.

Considerable work has been done in the past by major mining companies, including Noranda and BP Selco which both estimated inferred reserves a t J&L to be 11.0 million tonnes grading 0.2 oz gold and 7% combined lead-zinc.

Earlier this year Equinox completed a $1.6-million program which generated a diluted proven and probable mineable reserve of 532,400 tonnes grading 0.23 oz go ld, 1.8 oz silver, 4.9% zinc and 2.3% lead within one sector of the overall depo sit which has a 3.2 km surface strike length.

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