A recent issue of $675,000 worth of flow-through financing will allow Lyon Lake Mines (ME) to proceed to the feasibility stage on the Beta Vargas gold deposit in Costa Rica. Lyon Lake can earn a 50% interest in the property from Black Cliff Mines (TSE) by spending $200,000 on exploration and paying $128,500 to a Costa Rican company.
Michel Bouchard, vice-president of exploration, said the current drilling program will attempt to confirm possible reserves of 6.8 million tonnes grading 1.3 grams (0.034 oz.) gold per tonne. He said the reserve figure is based on sampling, trenching and limited drilling by a Costa Rican Government agency that worked the property from 1980-87. “We’ll be checking all that old data,” he said.
At the same time, Lyon Lake will probe a zone of enrichment at depth, hoping to outline a higher- grade core of one million tonnes grading about three grams.
Bouchard compared the deposit to the large tonnage epithermal deposits found in the southwestern U.S. In this case, he said the altered, mineralized zone stands out as a topographic high on the landscape. An adit, where much of the original sampling was done, runs through the middle of the hill.
The feasibility study, including laboratory heap leaching, will continue into the autumn months.
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