A recently signed letter of intent could result in Kookaburra Gold (VSE) acquiring a group of claims adjacent to its Santa Fe South property near Hawthorne, Nev., from Princeton Mining (TSE).
The agreement calls for Princeton to receive 400,000 shares which would result in the company owning 7% of Kookaburra’s issued capital. In addition to a number of drilling prospects, the claims include the Longshot Ridge copper deposit which is estimated to contain preliminary reserves of 15 million tons grading 0.55% copper. The deposit is oxidized and is underlain by a similar tonnage of copper-sulphide material. The Longshot Ridge is defined by 15 widely spaced drill holes (200-500 ft. apart) outlining a deposit measuring 2,300×1,000 ft. and up to 300 ft. deep. Initial estimates put the strip ratio at about 0.6-to-1.
The deposit is subject to a 15% net profits interest held by CoCa Mines (NASDAQ) which has the option of converting to a 30% working interest by paying a proportionate amount of development costs plus interest. Kookaburra’s nearby Santa Fe South project is estimated to contain preliminary reserves of 140 million tons grading 0.35% copper although Rennie Blair, president of Kookaburra, noted that drilling has indicated the resource contains higher-grade areas. He added that an induced polarization survey indicates the deposit is open in three directions with a second large target immediately south of the reserve.
Blair said the company will concentrate on developing the Longshot Ridge area on completion of the agreement. No specific exploration plans have been made; he expected to spend in the order of US$560,000 on the project over the next 8-9 months.
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