Exploration progresses on Terramar’s Reid mine

The first phase of exploration at the Reid Mine project near Redding, Calif., has been completed by Terramar Resource Corp.

The underground workings at this former producing gold mine have been dewatered to the 800-ft level, some 1,100 ft below the surface. The workings for both the second and eighth level are being prepared for a diamond drill program to explore the Reid, Evening Star, Central and other known parallel veins.

Funding for the work at the Reid comes from a further private placement of $600,000 from parent company Pacific Concord Resource Corp.

Pacific Concord, itself, reports it has acquired a 100% interest in a large block of mineral claims near North Bend, Ore., which are, the company says, the subject of an exploration program for precious metals. The analytical work is being conducted at the research facility of Pacific Concord in Delta, B.C.

Pacific Concord agreements have secured ownership of the claims, which comprise 18,250 ac, on terms which defer the principal purchase price until an independent feasibility study on the property is completed. The purchase price is equal to 10% of the valuation of the independent study, which consideration cannot exceed $44 million(US).

In addition, a payment in the amount of $187,732 will be made to cover a portion of the exploration costs to date. The Oregon claims are subject to a net smelter return in favor of the original prospector, which interests are at present the subject of purchase negotiations with the Concord Group.

The Mexican interests include a direct and profit shares interest in two Mexican corporations in which Terramar has a 30% interest.