Goldcorp takes Bonanza stake

Vancouver High-grade gold and Goldcorp (G-T) often appear in the same sentence, so it is not surprising that the producer has taken a 10.4% stake in the junior explorer that holds the Copperstone project in southwestern Arizona.

American Bonanza Gold Mining (BZA-V) has recently resumed underground drifting to extend the existing decline on the property. The company’s first target area lies 150 metres south in the D zone, where a surface drill hole cut 3.1 metres grading 182 grams gold per tonne. The decline will then be used for an underground drilling and sampling program aimed at converting the current resources to reserves. The geological resource for the C and D zones come in at 2.1 million tonnes grading 18.04 gram gold per tonne.

From 1982 through 1987, Cypress Minerals pulled 500,000 oz of gold from material grading 3.11 gram gold in the Copperstone open pit. In the late 1980’s, now defunct Royal Oak Mines began investigating the underground potential of the property and in the mid 1990’s the junior discovered a northwestern extension of the mineralization. A new mine plan was drawn up, envisioning a 185,000 tonne per year operation over a 5- year mine life.

By the late 1990’s, Asia Minerals, which subsequently took over American Bonanza Gold, acquired 100% of the property. Following up on the underground potential, the junior cut bonanza gold grades in the D zone with three drill holes.

Mineralization on the project occurs mainly in native form with some quartz and iron oxide encapsulation. There are no deleterious metals or carbon minerals and copper oxides were typically found associated with the gold mineralization.

Goldcorp garnished its interest in American Bonanza Gold by being the largest buyer of a newly completed $4 million financing by the junior. The private placement comprised 18.3 million units priced at $0.22 each. A unit holds one share and half a warrant. Each full warrant allows the holder to purchase another share at $0.28 for a year.