U.S. REPORT LAC starts drill program on Blue Moon project

A first-stage, US$1 million exploration program is now in progress at the Blue Moon project in Mariposa Cty., Calif.

LAC Minerals (TSE) recently finalized an option agreement with property owner, Colony Pacific Explorations (TSE).

LAC can earn a 50% interest in the property by making minimum expenditures of US$11 million in two stages as well as completing a comprehensive feasi- bility report on the project.

Colony Pacific has alreadyoutlined a preliminary reserve on the property totaling 3.8 million tons grading 7.96% zinc, 1.03% copper, 0.48% lead, 0.067 oz. gold and 2.61 oz. silver per ton.

The first stage of the program will include 25,000-30,000 ft. of drilling as well as geophysical and geochemical work. The drilling is designed to confirm and expand existing reserves as well as determine a shaft location.

The second stage includes the development of a 1,400-ft. shaft and an exploration drift parallel to the deposit. All permits are in place for the second stage work.

Stage II, which will require a minimum of US$10 million in expenditures, will also include underground drilling, bulk sampling, and other detailed feasibility work.

LAC is expected to make a decision on proceeding with the second stage by October.