The land position was assembled by Pactolus Corp., a private company, and includes ground held by Homestake Mining (NYSE) and Monex Exploration both of which are entitled to royalty and net profit payments from production.
Under its option agreement, Star Valley will have to spend $100,000 on the project this year and fund exploration work totaling $1.5 million(US) to Dec 31, 1993 or sooner if feasibility work is completed.
The project area consists of 64 lode mining claims and 128 mill site claims. Past production, which was unreported and probably limited, occurred from a number of underground adits which followed high angle vein structures. Previous drilling consisted of 33 holes or a total of 6,745 ft. A number of mineralized zones were encountered in this program including 40 ft of 0.086 oz gold, noted Star Valley.
A mineralized reserve of 1.5 million tons grading 0.043 oz gold at a 3-to-1 strip ratio has been established on the property which includes a higher grade core of 416,000 tons grading 0.076 oz. The upcoming work program will consist of metallurgical testing and exploration drilling to confirm and expand the size of the known reserve.
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