Noranda Expl. concludes option with Beaver

Even major companies like Noranda are starting to recognize the profit potential in small U.S.-based heap leach producers. Noranda Exploration recently concluded an option agreement with Beaver Resources for a 1,300-acre land package near Beaver’s Kramer Hills gold project in southern California.

Noranda can earn a 50% interest in the group by completing a 4,000-ft drill program and spending a minimum of $1 million(US) on exploration during the next three years. It will also have to make payments of $610,000 to Beaver during that period and deliver a favorable feasibility report recommending production.

Beaver is already producing gold from test heaps at Kramer Hill and equipment is in place to meet its 50,000-ton-per-month production objective. Full production was scheduled to begin in early February and the plant is being designed to operate automatically with a minimum of supervision, the company reports. A water well has been completed near the mine site which Beaver says should meet existing needs.

Beaver has interests in several oil and gas wells in Oklahoma. By mid- January the company had participated in the drilling and completion of seven wells with working interests varying from 4%-10%. These wells are providing significant cash flow to the company.