A recent agreement with a subsidiary of DRX Resources (NASDAQ) gives Glamis Gold Mines (TSE) an exclusive 90-day option to examine DRX’s Commonwealth gold-silver property.
The property is in Cochise Cty., Ariz. Preliminary estimates place reserves at about eight million tons grading 0.042 oz. gold-equivalent per ton. The estimate was compiled from the results of an extensive sampling program from old underground workings, in addition to a limited amount of drilling.
Glamis must spend a minimum of US$50,000 on the property during the 90-day period.
Jim Billingsley, vice-president of Glamis, said the company plans to begin a drilling program within two weeks. He noted that there was no set budget for the program, except for the US$50,000-minimum stipulated in the agreement. He added that additional expenditures will depend on results.
If Glamis decides to proceed with an option on the property after the 90-day examination period, it can earn a 60% interest by bringing it to the final feasibility stage. Glamis must also pay DRX for 60% of the proven and probable gold and silver reserves outlined subject to a minimum of US$1.2 million.
Details of the purchase cost were not disclosed but Billingsley said the price would be less than US$20 per oz.
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