BHP Minerals considering additional work on X-Cal’s claims in

Drilling has been carried out by BHP Minerals on three properties held by X-Cal Resources (TSE) along Nevada’s Battle Mountain trend.

The 20-hole program provided an initial test of some targets and was aimed at identifying structural and stratigraphic zones capable of hosting an economic gold deposit. Based on the results, a second-phase program is warranted on the Mill and Gold Spar properties. A decision on Crippen Canyon will be reached later this year, following geophysical work. Drilling on Mill intersected 10 ft. grading 0.527 oz. gold in Upper Plate rocks near a fault zone, at a depth of 260-270 ft. These values were interpreted to be leakage from the fault, which X-Cal believes suggests potential for good-grade, Lower Plate mineralization. Another hole intersected Upper Plate mineralization and returned 40 ft. of 0.012 oz. gold between 260 ft. and 300 ft.

BHP Minerals can earn a 51% interest in one or more of these properties by paying US$240,000 cash plus US$800,000 of drilling for each claim group. The company recently doubled the size of the Gold Spar project to 4,500 acres. The newly acquired portion is wholly owned.

X-Cal also owns the Eureka gold project in the Battle Mountain trend. President Shawn Kennedy said the project is attracting the interest of several major companies in light of recent news reports that Homestake Mining has made a significant gold discovery in the region.