Partners Athena Gold (VSE) and Pegasus Gold (TSE) have agreed to a 45-day extension to negotiate the future of their Talapoosa joint venture in northwestern Nevada.
Pegasus can earn up to a 70% interest and was originally required to pay US$250,000 cash to Athena by March 9, marking the start of the final feasibility stage of the agreement.
Athena reports that Pegasus has informally sought either a revision of the existing agreement or an outright purchase of the property from Athena. Situated 45 miles southeast of Reno, Talapoosa is estimated to contain 50.1 million tons grading 0.026 oz. gold and 0.35 oz. silver per ton, based on a cutoff of 0.01 oz. gold.
Tests indicate heap-leach gold recoveries of 78% and 60% for oxides and sulphides, respectively.
Under the current agreement, Pegasus can earn its 70% interest by spending a further US$1 million on exploration and paying Athena an additional US$2.5 million prior to March 9, 1995.
Pegasus must also fund all capital costs and will receive 90% of cash flow until payback.
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