Reno-based Santa Fe Pacific Gold (NYSE) has leased two gold properties in Nevada’s Carlin Trend from Minefinders (VSE).
The Gutsy and BM properties are about 2 miles northwest of the Rain gold mine.
Santa Fe agreed to spend at least US$100,000 per year on exploration and development work over the next five years. The agreement calls for annual rental payments totaling US$80,000 over three years, followed by staged advance royalty payments beginning on the fourth anniversary of the agreement. Minefinders also retains a staged net smelter return royalty of 2% to 5%. In a separate development, Santa Fe reached a joint-venture agreement whereby it can earn an undivided 70% interest in International Calneva Gold’s (VSE) SBD claims in Lander Cty., Nev. To do so, Santa Fe must spend US$500,000 on exploration over five years.
The SBD project adjoins Santa Fe’s Trenton Valmy project on Battle Mountain, where a resource of 20 million tons grading 0.03 oz. gold per ton was reported at the end of 1993.
In the same state, Santa Fe is exploring Calneva’s Blue Spider project where exploratory drilling began in November, 1994. The company can earn a 65% interest in this property by spending US$900,000 over five years.
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