X-Cal exploring near Sleeper

A gold prospect next to the producing Sleeper gold mine in Nevada is providing a new exploration focus for X-Cal Resources (TSE).

Sampling on the X-Cal-York Mines property has returned an 11-ft. width averaging 4.14 oz. gold per ton from underground workings about 14,000 ft. southeast of the Sleeper pit.

A nearby breccia zone was also sampled, and returned 10 ft.

of 0.26 oz. Other assays from old workings include 32 ft. of 0.098 oz. and 8 ft. of 0.19 oz.

“This area is known for its high-grade, coarse gold,” explained X-Cal Vice-President Barry Smee. “We took continuous chip samples and had them processed in Canada using the Total Metallic Assay method.”

Smee said the property shows considerable evidence of past mining. The company plans to do more surface, as well as underground, sampling to confirm results before considering overtures from major companies.

The agreement with York Mines of Winnemucca is still subject to approval and title checks. The property, having been held privately for some time, has received little exploration of late.

X-Cal signed an option agreement to acquire the property outright by making staged advance royalty payments totaling US$3 million and by offering 200,000 X-Cal shares. York Mines will initially retain a 3% net smelter return royalty. When all payments have been made, the royalty will be reduced to 0.5%.