U.S. REPORT Win-Eldrich extends option

Win-Eldrich Mines (TSE) has extended its option to Billiton Minerals for the purchase of its Ashdown gold property in Nevada to July 4, 1991. Billiton, a unit of Shell Oil, previously paid US$200,000 to Win-Eldrich for the option and will pay another US$45,000 for the extension. If the option is exercised, Win-Eldrich would assign its right to mine the property to Billiton for a cash payment of US$2 million and a 4% net smelter return royalty. To date, Billiton has spent about US$600,000 on exploration at the Ashdown property.

Since the original option was granted, Billiton announced its intention to dispose of its gold-related assets in the U.S., including the Ashdown option. Billiton has advised Win-Eldrich that it is currently in discussions with several major mining firms to which it may assign the Ashdown option.