Canmine acquires Mexican gold bet

Canmine Resources (CDN) has agreed to acquire a 100% interest in the Moctezuma gold property in Chihuahua, Mexico.

The property contains two high-grade gold showings, including a 40-ft.-wide quartz vein exposed on surface for a strike length of 100 ft. Canmine says channel samples taken from the vein indicate an average grade of 0.57 oz. gold per ton.

Since the mineralization occurs as free gold, the company plans to set up a portable gold mining operation on the property to generate funds for exploration and development.

In return for control of the property, Canmine has agreed to a 3% net smelter royalty upon production and a $50,000 cash payment after the sale of the first 2,000 oz. of gold.

Meanwhile, Canmine has received a complete set of results for its FER property in northern Manitoba. The company says the 8-hole winter program traced the FER base metal zone along a strike length of 650 ft. Since the mineralization remains open along strike and down-dip to the northwest, Canmine plans to resume drilling later this spring.