Pierce Mountain Resources (VSE) has acquired an option on the Ferro gold property near Snow Lake, Man. Based on a consultant’s report, the Ferro property hoses reserves of 73,000 tons grading 0.39 oz gold per ton in the proven-propbable category. An additional 11,000 tons grading 0.34 oz is classified as possible. the reserve calculation is based on work completed by previous operators and not on recent drilling.
The property is developed by a 54-ft shaft and 4,300 ft of underground workings on four levels. Gold mineralization is associated with quartz-filled shear zones. Pierce Mountain hopes to outline a minimum reserve base of 200,000 tons grading 0.3 oz during the course of an exploration program. Al;so, the exploration work will focus on better understanding the complex structural setting which hosts the gold mineralized shoots.
Pierce Mountain can earn an 80% interest by spending $2 million ion exploration over a 2-year period. The remaining 20% cna be purchased for a payment of $500,000 to the vendor.
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