Following the purchase of a 15% net profits interest in the Longshot Ridge property from CoCa Mines, Kookaburra Gold (VSE) now owns a 100% undivided interest in the property.
Kookaburra purchased CoCa’s interest, which was also convertible into a 30% working interest, for US$60,000.
The property, 150 miles southeast of Reno, Nev., hosts a large copper-oxide deposit which the company hopes to bring into production using heap leach solvent-extraction technology.
Drilling on the property to date outlined preliminary reserves totalling about 15 million tons grading 0.55% copper. Rennie Blair, president of the company, said an updated estimate bringing reserves into a proven and probable category should be completed shortly.
Blair said the company will need about $1.8 million to advance the property to the prefeasibility stage, including further drilling, column leach testing and environmental studies.
Blair said the company is now looking at raising about $1 million initially, most likely through some form of equity financing.
The company’s major shareholder, Xenolith Gold of Australia, recently provided the company with a A$300,000 line of credit which can be converted into equity at the prevailing share price at drawdown.
Be the first to comment on "Kookaburra buys"