Klondex Mines has completed an arrangement for an immediate drilling and development program on its Fire Creek heap leach gold project in Nevada, a joint venture with Alma American Mining Corp.
Two previous heap leach tests totalling 35,000 tons produced about 1,000 oz of gold confirming the leachability of the ore and the viability of the mine, says President George Meschi.
About 400,000 tons, grading 0.06 oz gold per ton, was developed by previous drilling in the 1980-82 seasons. Some holes assayed as high as 0.10 and 0.20 oz over good widths in the upper areas of the drilled strike zone.
During 1986 several other anomalous areas were discovered near the shear zone which contains the proven ore reserves. Drilling was scheduled to start immediately to increase tonnage and reduce the strip ratio.
Under the agreement with Alma, Klondex has already received a cash advance of $25,000. Klondex can also choose, by March ,1987, to take a sliding net smelter royalty ranging from 5% at a gold price of $400(US) per oz of gold to a maximum of 15% at $500 per oz, or Klondex can take a 30% working interest.
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