Champion Resources options gold-copper project in Honduras

Champion Resources (VSE) can earn half of Toronto-listed Tombstone Resources’ interest in the Minoro gold-copper project in Honduras.

The project is currently an 80-20 joint venture between Tombstone and Mar-West Resources (VSE), respectively.

Champion must spend $1.5 million per year over three years and meet certain cash and share payments, including $100,000 plus 80,000 shares upon signing. In total, cash and share payments will amount to $500,000 plus 240,000 shares.

Champion will also pay Tombstone “success payments” of US$2.7 million upon receiving a positive feasibility, as well as US$2.7 million at the beginning of mine construction and US$2.7 million at startup.

Historic work at Minoro concentrated on four mineralized zones within the 100,000-hectare concession.

Drilling on one of these, the Montecielo, returned 120 metres grading 1.45% copper and 1.9 grams gold per tonne. The zone remains open in three directions.

At another zone, the Tatanacho, work in the 1960s and ’70s outlined an open-ended resource of 15 million tonnes grading 0.65% copper. Gold values were not estimated at the time, although subsequent sampling returned values ranging from 1 to 1.5 grams.

Champion has until the end of February to complete a due diligence review. It will finance its work on the Minoro project through a private placement of 2 million units at 60 cents each.