U.S.REPORT Equinox cuts deals in Nevada

Two earn-in agreements signed by Equinox Resources (TSE) could see up to US$1.5 million in exploration funds spent on the company’s Nevada properties. The first joint venture grants Amax Gold (NYSE) the right to earn a 60% interest in 170 mineral claims by spending US$1 million over five years.

The claims are near Mineral Hill, Nev., 36 miles south of Carlin and cover 5.3 square miles of what Equinox describes as favorable host rocks for Carlin-type gold deposits. The company notes that widespread mineralization occurs on surface and that Amax has committed to an immediate 4,000-ft. drilling program to test the property’s potential. After earn-in, Equinox has the option to dilute to a 25% interest with Amax funding the project to a bankable feasibility stage.

The second joint venture includes three Nevada properties already acquired by staking as well as any others acquired in the area. Equinox will be the operator of the program while a “major diversified mining company,” as termed by Equinox, has the right to earn a 50% interest by funding the first US$500,000 in exploration expenditures. The funding company has the right to operatorship in any project defined to contain more than 300,000 oz. of gold. An advance of US$70,000 has been received by Equinox to fund initial 1990 exploration costs. Equinox did not name the mining company involved.