Glamis and Gold Fields sign a lease agreement

A formal lease-purchase agreement has been signed between Glamis Gold and Gold Fields Mining for 2,400 unpatented mining claims in Imperial Cty., Calif. The claims cover approximately 75 sq miles in the eastern portion of a mineralized belt extending from Gold Field’s Mesquite deposit to Glamis’ Picacho mine, a gold heap leach operation.

Six anomalous areas containing low grade gold mineralization have already been identified on the property. Under terms of the lease purchase agreement Glamis will pay $100,000(US) per year within a 2- year period but it can purchase the claims outright for $1 million. The first payment of $100,000 has been made, says Glamis.

Separately, Glamis has signed a letter of intent with Amir Mines to explore and develop the large claim block. The two companies are already involved in a joint venture on the Buffalo Gulch-Friday gold belt in Idaho.

Under the latest joint venture agreement, Amir can earn a 35% working interest in the California claims by spending $1 million(US) over a 3-year period. A minimum of $250,000 must be spent each year. Glamis will fund all metallurgical test work including a 10,000-ton bulk leach test on each ore zone with economic potential. Property acquisition costs will be shared on a 65%/35% basis as will all additional work on the property following the initial earn in period.

Glamis, the operator, says an aggressive exploration program will begin this July. The work will consist of extensive rotary drilling, geological mapping plus geochemical and geophysical surveys. Amir recently completed a $2.9-million private placement to fund the acquisition and development of its various gold projects.