A joint-venture agreement between Kalahari Resources (VSE) and Oneida Resources has revived the Mexican Hat project in Cochise Cty., Ariz.
Kalahari can earn up to a 60% interest in the property by spending $2.25 million and producing a feasibility study.
The two companies have common management, and the joint venture requires regulatory approval.
The property was last worked in 1989-1990 under a joint venture with Oneida and Placer Dome. The latter outlined 5.8 million tons grading 0.027 oz. gold per ton. However, Oneida disputed that estimate, and calculated its own figure of 7.7 million tons grading 0.034 oz. gold per ton.
Oneida subsequently acquired Placer’s interest, and the property has been sitting dormant since. Plans call for a 40,000-ft. program of reverse-circulation drilling, financing of which is being negotiating by Kalahari. The estimate cost is US$500,000-$600,000.