A letter of understanding has been signed by Pegasus Gold (TSE) and Fischer-Watt Gold (NASDAQ) allowing Pegasus to earn a 77% interest in the Emigrant Gulch prospect in Park Cty., Mont. To earn the interest, Pegasus must conduct an exploration and development program and produce a bankable feasibility study. If the project proceeds to production, Fischer-Watt has the option to dilute its 23% interest to a 10% net proceeds royalty.
The property contains a number of volcanically hosted targets including the Duv zone which was partially explored in 1990. The zone is a copper-gold bearing breccia pipe.
Six holes were drilled on the zone with the two best holes intersecting 260 ft. grading 0.033 oz. gold per ton and 0.31% copper, and the other cutting 100 ft. grading 0.063 oz. gold and 0.26% copper.
Pegasus hopes to define other targets on the property during the coming summer through a mapping and sampling program.
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