NEVADA SPECIAL — BMR to advance Comstock Lode

An agreement with Rea Gold (REO-T) enables BMR Gold (BGL-T) to acquire the Comstock Lode heap-leach project in Nevada’s historic Comstock district.

The Comstock region, 17 miles south of Reno, produced 8.25 million oz. gold and 192 million oz. silver from 1859 to 1957.

The option was acquired by paying Rea Gold US$167,000; of that amount, US$75,000 will be applied to the purchase price of US$500,000. BMR must also issue US$200,000 of its shares (valued at market on closing), as well as a 5% net profits interest from production (capped at US$115,000).

BMR’s wholly owned Nevada subsidiary, Oliver Hills Mining, has until the end of this year to exercise its option to acquire the project.

The company’s goal is to put the Comstock project back into production using existing facilities, which include a permitted, operational extraction plant, leach pads and assay lab.

At last report, minable reserves stood at 2.1 million tons containing more than 100,000 oz. gold and 1.2 million oz. silver in two open-pit deposits known as Lucerne and Billie the Kid. The average grade is reported at 0.05 gold-equivalent ounces per ton.

The property has underground potential, with possible reserves of 2-3 million tons grading 0.2-0.5 oz. gold.

In a separate agreement, Maximum Resources (MXR-V) signed an agreement allowing it to acquire a 15% equity position in Oliver Hills Mining. The company envisions an operation capable of producing 25,000-35,000 oz. gold and 175,000 oz. silver annually.