A proposal by Amca Resources (VSE) to extend the lease on its sole project, the Silver Cross property in Arizona, was recently turned down by the leasor. Amca held a 67.5% interest in the gold-silver prospect.
Amca had been attempting to produce in the range of 7,000-10,000 oz gold per year from a small scale heap leach operation the “old fashioned way” — without benefit of a feasibility study and with very little definition drilling.
While conducting an initial drill program on the property this spring, Amca met with severe water problems and was unable to find an alternative drilling program to deal with a ledge of water that had formed surrounding its workings. The company was last reported to be considering a grass roots exploration program on the rest of the property based on its own past work, and that of others.
The lease runs out September 1.
Charles Martin, president, says the company will make a further proposal before the lease expiry date. If the company is not successful, Martin said it would seek to acquire other heap leach properties.
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