The Mexican subsidiary of Echo Bay Mines (TSE) has reached an agreement to earn up to a 60% interest in the Paredones Amarillos gold project in Baja California Sur territory.
Baja Gold (TSE) owns the property, south of La Paz, and Echo Bay can earn a minimum 51% and a maximum 60% interest by spending US$5.3-$8.3 million over 42 months.
Previous work outlined a preliminary resource, in all categories, of 9 million tons grading 0.05 oz. gold per ton. William Meek, vice-president of Baja, said about a third of the resource is oxidized.
He added that Echo Bay has not disclosed what work it did during a 6-month due diligence review (recently completed) or its plans for this year. At least US$500,000 must be spent in the first year of the option, but Meek believes Echo Bay will spend significantly more than that.
Baja is reviewing other pursuits now that its major asset is under Echo Bay’s control.
Recently appointed president of the subsidiary is Paul Saxton, who was previously Viceroy Resources’ senior vice-president of operations. Baja has 6.4 million shares outstanding and $300,000 in working capital. The company is arranging a private placement of $2 million to fund new projects.
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