Leadville Mining gains second Mexican gold play

Denver — After picking up a gold property in Sonora, Mexico, Leadville Mining & Milling (LMMI-O) has inked a deal for a second property, in the neighbouring state of Sinaloa.

The company will earn a 51% interest in the Los Lobos gold property, 30 miles north of Culiacan, from International Northair Mines (INM-V).

The property consists of two concessions covering 7,000 acres with significant widespread gold mineralization. The main target, exceeding a mile in length, contains stockwork veinlets and silica flooding hosted in a flow-banded rhyodacite.

Subject to a 30-day due-diligence review, Leadville can earn the interest by paying US$160,000 in cash, issuing Northair 120,000 shares and spending US$1.5 million on exploration — all over a 3-year period.

For the due diligence, Leadville will spend US$150,000 on exploration by mid-June, including at least 3,000 ft. of reverse-circulation drilling.

Earlier in the year, Leadville agreed to buy the El Chanate gold prospect in Sonora from AngloGold (AU-N). The target contains a resource of 38.6 million tons averaging 0.026 oz. gold per ton. No purchase price was disclosed.