Corner Bay grabs used crusher

Corner Bay Silver (BAY-T) has acquired Canyon Resources‘ Briggs mine crushing plant for US$250,000 in cash plus 850,000 shares.

The company plans to move the plant to the Alamo Dorado silver project in northern Mexico following some maintenance work. The acquisition is part of Corner Bay’s plan to keep capital Cost at the project as low as possible.

Denver-based Canyon Resources has applied US$1.5 million of the proceeds from the sale to reduce the mine’s debt to US$1.8 million.

The crushing plant was decommissioned earlier this year as the remaining ore at Briggs is more oxidized and readily leachable and can be processed without crushing.

Canyon’s sole operation, the Briggs mine in southeastern California, produced 96,141 oz. gold and 28,177 oz. silver in 2001. Cash operating costs hit US$231 per oz., down from the US$267 per oz. tallied in 2000.

Alamo Dorado is Corner Bay’s key asset and hosts a near-surface resource of 117.5 million oz. silver and 447,700 oz. gold (or 142.8 million oz. silver-equivalent) in 79.6 million tonnes grading 45.9 grams silver and 0.18 gram gold per tonne (T.N.M., May 27/02).

The asset has attracted the attention of Pan American Silver. The company has agreed to acquire all the outstanding shares of Corner Bay. Under a revised deal, each Corner Bay share will be exchanged for 0.385 of a common Pan American share plus 0.1925 of a Pan American warrant. Each whole warrant will allow the holder to buy a common Pan Am share for C$12 for five years. The warrants will likely be listed on the Toronto Stock Exchange.

The deal still faces a vote by each company’s shareholders.

Alamo Dorado hosts a near-surface resource of 117.5 million oz. silver and 447,700 oz. gold (or 142.8 million oz. silver-equivalent) in 79.6 million tonnes grading 45.9 grams silver and 0.18 gram gold per tonne (T.N.M., May 27/02).