Study endorses production at Western World copper bet

Two associated Vancouver-based companies, United Gunn Resources (VSE) and B.G.M. Diversified Energy (VSE) will share the remaining interest.

Prepared by Wright Engineers, the feasibility report indicates the operation could produce 11 million lb of copper plus gold and silver credits each year for about six years at a milling rate of 750 tons per day. Capital costs for an open pit operation are estimated at $7.5 million(US).

At last report, the project had mineable reserves of 1.45 million tons grading 2.65% copper plus gold-silver values in two shallow lenses. Advanced permitting and debt financing activities are being conducted by Plexus Inc.

In 1988 United Gunn received net revenue of about $1.3 million from its 30% holding in Cuisson Lake Mines. That company holds claims covering part of the Granite Lake zone being mined by and forming part of the Gibraltar Mines copper mining operation near McLeese Lake,B.C.

The company is also involved in the re-development of a gas field in northern British Columbia. The Beaver River gas field was previously held by Amoco and produced 178 billion cubic feet of gas before water problems forced a production suspension.

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