El Realito, a gold-silver property in Mexico’s Chihuahua state, will be explored by Nord Pacific (NASDAQ) and Francisco Gold (VSE).
Francisco, an Australian-based company, paid US$100,000 for the property before forming the joint venture with Nord Pacific.
The latter will earn a 65% interest by paying US$425,000, spending at least US$2 million on exploration, and producing a bankable feasibility study within the next two and a half years.
After the buy-in, both companies will fund the final property payment of US$1.5 million, according to their respective interests.
The deposit consists of a quartz vein system more than 5,000 ft. long and 20-100 ft. wide.
Reserves are estimated at 661,000 tons of oxide and sulphide material grading 0.06-0.07 oz. gold and 7-8 oz. silver per ton. These figures, however, are based on pits, trenching and sampling, and not on drill holes.
Francisco believes there is potential for 4 million tons of open-pit reserves at the same grade, and Nord Pacific will undertake drilling to evaluate this potential.
Nord Pacific also owns a 40% interest in the Girilambone copper mine in Australia and 40% of the Ramu nickel-cobalt-chromite project in Papua New Guinea.
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