The closing of an agreement to purchase a 100% interest in the Minas de Oro gold-copper property provides Tombstone Explorations (TSE) with a project in Honduras.
The company paid 80-20 owners Kennecott Exploration and Fischer-Watt Gold (NASDAQ) US$350,000 and agreed to make further payments totalling US$800,000 over the next 18 months.
Kennecott also received 1 million share purchase options exercisable at $1.50 in the first year and $1.75 in the second.
Tombstone is preparing to let a drilling contract for an initial phase of work on the property with a budget of US$750,000.
Planned work will include surface work followed by drilling to confirm size, grade and recovery of three known resource areas, including the Minas Viejas, Montecielo and Tatanacho.
Tombstone reports that each of the three areas has the potential for heap-leachable reserves in excess of 5 million tons. Grades in the Minas Viejas area average 0.044 oz. gold per ton and 2.8% copper, while grades at Montecielo are about 0.063 oz. gold and 1.6% copper. Values at Tatanacho average 0.032 oz. gold and 1.9% copper.
Further potential exists in the San Antonio area about one mile northwest of the three known near-production targets. A 1,100-ft. by 500-ft. surface gold anomaly over the zone was drilled by Kennecott, returning over 390 ft. grading 0.03 oz. gold starting from surface and bottoming in 0.06-gram mineralization.
Mar-West Resources (VSE), which originally brought the property to Tombstone, will have a participating interest in the project. The two parties are currently negotiating the size of the interest; however, it is expected to be in the region of 30%.
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