The signing of a letter of intent sets the stage for Mountain Lake Resources (MOA-V) to acquire the Copper King property, some 18 miles west of Cheyenne, Wyo.
The junior plans to form a joint venture with the subsidiary of an Australian company that previously spent US$615,000 on the Copper King deposit, one of four anomalous gold-copper targets on the property.
This work identified a proven and probable reserve of 25.7 million tons of 0.024 oz. gold per ton and 0.19% copper (within a total resource of 49.9 million tons).
The Copper King deposit covers a small hill and is amenable to open-pit mining at an estimated stripping ratio of 1.2-to-1.
Three other prospective anomalies have been identified on the property, all within a 2-mile radius of Copper King.
Mountain Province can earn a 60% interest by spending US$150,000 in year one, followed by US$200,000 and US$250,000 in years two and three, respectively, and US$400,000 or a feasibility study in year four. Once the definitive agreement is signed, Mountain Lake will issue 100,000 shares to its partner.
Mountain Lake also has an option to buy its partner’s 40% interest after completion of a feasibility study.
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