A VSE and TSE-listed junior company, based in Vancouver, U.S. Precious Meals Inc, has entered into an agreement with the exploration arm of Noranda Inc.
In the agreement Noranda Exploration can earn a 50% interest in the Hilltop property, a potential gold producer in the 100,000-oz- per-year range, located in Lander Cty, Nevada. The property is currently held (75%) by Ruskin Developments of Vancouver and (25%) by U.S. Precious Metals.
Noranda has budgeted $1.3 million to drill promising targets in the immediate area of the known gold deposit in an attempt to add to reserves of 10.35 million tons averaging 0.073 oz gold per ton which was outlined by Gulf Mineral Resources, the previous property owners.
This program will be followed within 12 months, according to U.S. Precious Metals, by a detailed metallurgical testing program and a detailed engineering feasibility study for a potential open pit gold mine on the property.
The agreement stipulates the major company must also put the property into production within 3 years from now to earn the 50% interest.
If and when a production decision is made, the two juniors have the option to either keep their 25% participating interests or convert them into 15% non-participating royalty interests.
U.S. Precious Metals has 8,516,021 shares outstanding, trading this week in Toronto at about $2.40.
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