Billiton to explore Ican’s Oregon porphyry gold deposit

Last winter Ican, a Calgary-based junior mining firm, outlined a shallow porphyry gold deposit after drilling 85 holes to depths of 250-350 ft below surface.

Using a cut off grade of 0.08 oz gold per ton, Ican has calculated a drill-indicated reserve inventory of 50 million tons grading 0.02 oz gold per ton. All the drilling was completed within an area 1,000 x 2,000 ft.

According to Ican President Guenter Liedtke, the reserves are hosted in a steeply dipping zone which appears to be about 250-350 ft wide.

“We have drilled on less than 20% of the property. Other areas where anomalous samples have been discovered, have yet to be drilled,” Liedtke told The Northern Miner.

Under the proposed agreement, Billiton is expected to spend $5 million over three years to earn its interest in the property. The agreement requires Billiton to spend at least $1 million in the first year.

While Ican will hold a 49% carried interest until production starts, net proceeds will be shared on a 70% Billiton, 30% Ican basis until the U.S. company recovers its investment (including interest at prime plus 3%).

After that Billiton and Ican will hold a 51% and 49% joint venture interest respectively.

According to Ican, gold mineralization has already been traced in an area measuring 9,000 x 2,500 ft.

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