By acquiring a 75% interest in the Oteros project in western Chihuahua state, Levelland Energy & Resources (VSE) has involved itself in a fourth property in Mexico.
The cost of the 75% interest is $8,000 plus 50,000 shares. Oteros has never been drilled or examined by an exploration company. The claim area measures 988 acres
and covers a large anomaly within favorable andesitic volcanics. Within the area is a large breccia zone which reportedly contains visible gold, electrum and argentite in the quartz cement of the breccia. The zone averages about 400 ft. in width and has been traced for at least 1,300 ft. along strike before disappearing under overburden.
Twenty random chip samples taken over the breccia body returned an average grade of 0.095 oz. gold and 9.29 oz. silver per ton.
Levelland has also acquired a 75% stake in the Esperanza claim, which covers about 120 acres in the same area of Chihuahua.
President Donald Coates says the company is investigating other possible acquisitions in Mexico before deciding how and when to explore the new properties.
Bethlehem Resources (TSE) is gearing up to begin an initial $250,000 program on Levelland’s Delta-1 gold-silver project.
Levelland can earn a 75% interest in the property and it has granted Bethlehem an option to earn 50% in return for spending $2.5 million over five years.
Work to date has outlined an epithermal system of gold mineralization measuring 440 by 1,000 ft. Rock chip sampling across the zone returned an unweighted arithmetic average grade of 0.22 oz.
Bethlehem President Brian Kynoch says the company is planning an initial program of 4,000 ft. in eight holes this summer, although no start date has been set.
Bethlehem can joint-venture Levelland’s other properties, which lie within a 65-mile “area of influence” around the Delta-1 project.
Levelland has 6.7 million shares outstanding and $350,000 in working capital.
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