U.S. REPORT Glamis purchases DRX properties

A block of 54 claims in the Randsburg district of southern California was recently purchased by Glamis Gold (TSE) from DRX Resources (NASDAQ).

Glamis paid DRX US$200,000 for the claims and plans to use the ground to provide additional operation room for its existing mining operations in the area.

Glamis operates the Yellow Aster open pit heap leach gold mine near the town of Randsburg. DRX noted that the ground has limited exploration potential although the company is retaining a 1.5% net smelter royalty interest.

In addition, an April, 1990, option agreement between the two companies has been modified.

Glamis had an exclusive exploration option covering over 24,000 acres in the Randsburg area. The new agreement reduces the area to about 4,500 acres near the Yellow Aster operations and gives Glamis five years to form a joint venture.