Murray Pezim’s flagship, Prime Equities International (VSE), is proposing to spend at least $4 million this year to prove up a gold-rich polymetallic deposit in the Cook Inlet region of southern Alaska.
The program is still subject to completion of a 60-day due diligence review, as well as an option and joint-venture agreement with Westmin Resources (TSE).
Westmin can earn 70% (and possibly up to 100%) of the property from an Alaskan native corporation. Prime, in turn, can earn 49.9% of Westmin’s interest by spending $8 million on exploration and development by the end of 1995.
Based on work by Westmin and previous operators, the Johnson River property contains 1.1 million drill-indicated tons averaging 0.3 oz. gold and 0.23 oz. silver per ton, 0.76% copper, 8.37% zinc and 1.17% lead, associated with strong silicification in a crosscutting structural zone. The zone is open along strike and to depth.
Prime is proposing to drive a 2,620-ft. adit or incline to provide access to the deposit. This would also allow for confirmatory underground drilling, as well as bulk sampling for metallurgical purposes, thereby advancing the project to the feasibility stage.
Johnson River is already considered “potentially viable,” given current metal prices and access to Westmin’s Premier Gold mill near Stewart, B.C. Pezim says the project is sensitive to any modest improvement in tonnage or grade that could result from the proposed program.
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