A recent purchase agreement provides Sierra Nevada Gold (VSE) with control of the Promontorio gold-copper property in Chihuahua, Mexico.
The company will pay US$50,000 on final signing, plus US$100,000 on Jan. 15 of each subsequent year. It also must pay US$500,000 at the point of mine production, plus a 4% net smelter return royalty, for a total purchase price of US$5 million.
Three areas of interest were identified by a subsidiary of Placer Dome (TSE) which conducted exploration on the property in 1993 and 1994.
The geologic setting is described as a silicified dacite intrusive. Mineralized zones of intense silicification are associated with two major fault systems.
The Veta Grande and Mina Vieja areas returned a number of significant gold-copper intersections, including: 24.4 metres grading 5.15 grams gold per tonne, and 1.49% copper and 19.8 metres grading 4.11 grams gold and 7.74% copper in holes P06 and P27, respectively.
Drilling in the Cascada area returned a number of gold intervals with lesser copper values, including: 24.4 metres grading 1.28 grams and 0.1% copper in hole P02; up to 19.82 grams over 7.6 metres in hole P33; and 30.4 metres grading 2.19 grams gold and 0.35% copper in hole P37.
Sierra Nevada Gold is now drawing up its exploration plans for the property.
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