Asia Minerals to option Copperstone from Royal Oak

Asia Minerals (ASE-A) has entered into a joint-venture agreement to acquire up to an 80% interest from Royal Oak Mines (RYO-T) in the past-producing Copperstone gold mine in La Paz Cty., Ariz.

The agreement gives Asia Minerals the right to acquire an initial 25% interest in the property for US$500,000, plus the right to acquire an additional 55% by spending US$3 million on the project over three years and making a US$1-million option payment.

From 1987 to 1992, Copperstone was operated by Cyprus Amax Minerals as a 2,500-ton-per-day open-pit mine. The major extracted 500,000 oz. gold from 6 million tons of ore grading 0.1 oz. gold per ton.

Royal Oak optioned the property in 1995, and has since tested the downdip extension of the deposit with 34 holes totalling 28,000 ft. This work outlined an underground geological resource of 2.6 million tons grading 0.23 oz. gold, equivalent to 606,000 contained ounces. The resource estimate includes a higher-grade zone on the northwest margin of the deposit, which remains open along strike and to depth. The high-grade zone contains a diluted resource of 455,000 tons grading 0.48 oz. gold. Each of three holes drilled into this zone intersected roughly 25 ft. grading 1 oz. gold.

Asia Minerals plans to carry out a US$500,000 exploration program at Copperstone in 1998, including 10,000 ft. of drilling designed to extend the high-grade mineralization on the northwest margin.

Royal Oak holds 44% of Asia Minerals’ outstanding shares.