A US$200,000 drilling program is planned for the Madison gold-copper property about 25 miles southeast of Butte, Mont., by owners Galleon Mining (VSE) and BMR Gold (VSE).
The companies can earn a 100% interest in the property by issuing Berglynn Resources (VSE) 250,000 Galleon shares in staged payments. BMR has agreed to fund all financing required by Galleon for its portion of exploration costs. Previous exploration on the property by Inspiration Mines included 74 drill holes with expenditures totalling more than US$2 million. Preliminary estimates put reserves minable by open pit at about 1.9 million tons grading 0.64% copper. The previous drilling also outlined a deeper zone of gold mineralization below the open pit reserve.
The planned drilling program will attempt to expand the open pit reserve to include the deep gold mineralization. Galleon estimates the reserve potential at about 2.2 million tons grading 0.10 oz. gold per ton based on past drilling data.
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