Barexor acquires Cresc. Valley lease

Montreal-listed Barexor Minerals has acquired a lease comprising 153 claims in Nevada’s Crescent Valley.

The property, which consists of more than 3,500 acres, is close to three major gold deposits, including the past-producing Gold Quartz mine currently being explored by Amax (NYSE).

Underlying the claims is the northwest-trending Mud Springs fault, which is an important gold conduit in the area. Gold is associated with dark gray to black chert and argillite, and past drilling returned values as high as 0.072 oz. per ton over 20-ft. widths.

Barexor must make lease payments of $4,000 per month, spend $400,000 on exploration prior to February, 1998, and pay yearly fees for maintaining the claims.

In addition, the property carries a 4% net smelter royalty in which lease payments are credited. The net smelter return may be purchased by Barexor for $3 million prior to 1997, $4 million between 1997 and 2001, and $5 million after 2001.