A joint venture between Westley Mines (TSE) and Corona (TSE) will revive exploration efforts on what Westley has described as “the company’s most exciting project.” Corona is earning a 70% interest in the Washington Hill property, 10 miles east of Reno, Nev., by spending US$450,000 over a 3-year period. Westley will retain a 30% participating and 5% royalty interest.
Washington Hill covers a large hydrothermal system characterized by intense alteration and anomalous values of trace, gold-related elements. According to Westley, the partners will begin drilling immediately on a sulphide-rich, gold- bearing target similar in geology to the El Indio deposit in Chile.
Meanwhile, exploration drilling on the Boss project, 2,000 ft. from the small but successful heap leach operation near Tonopah, Nev., has intersected low-grade gold values. Widths of up to 75 ft. grading 0.01-0.06 oz. gold per ton are apparent in the Berg zone, a mineralized area on the periphery of a silicified rhyolite dome. Drilling will continue to test the zone to the south and west.
Financing for the Boss project is coming from both Westley and Western Gold Exploration and Mining. Western has bought 666,667 shares of Mintek Resources (VSE), operator of the project, for total proceeds of $133,333.
In another financing agreement, Westley will issue a private placement to Ventures West Resources of 380,000 shares for $114,000. Proceeds will be used to pay off a debt of $100,000.
Westley also plans to drill on the Nichol Spring and Red Edge properties in Nevada, both under joint venture with Santa Fe Pacific Minerals.
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