Equinox gets new US gold property

Plans for a new heap leach mine in southern California are high on Equinox Resources’ agenda following its acquisition of the Zenda gold property, located 40 miles east of Bakersfield in Kern Cty.

Equinox will pay $1.36 million(US) to Billiton Exploration U.S.A., a wholly-owned subsidiary of Shell Mining Co. for a 100% interest in the property. An initial $250,000 will be paid by Dec 23, with the balance to follow in January.

The property has mineable reserves of one million tons grading 0.065 oz gold per ton and 1.0 oz silver, at a cutoff grade of 0.025 oz, within a geologic reserve of six million tons grading 0.026 oz gold at a cut-off of 0.0l oz. Billiton spent about $800,000(US) from 1985-87 on 48 drill holes, surface sampling and feasibility work.

Equinox plans to spend $2.2 million to bring the heap leach mine on-stream next year. Annual production is estimated at 23,000 oz gold. Permitting and mine planning activities will start in January.