The Cieneguita heap-leach gold property in southwestern Chihuahua state is progressing towards production.
Operator Glamis Gold (TSE) can earn a 60% interest from Aquiline Resources (VSE) by incurring all expenditures required to bring the project to production.
The pilot plant is currently operating and leach tests are continuing in an effort to determine the gold recovery. Infill drilling is also under way. Drill-indicated reserves stand at 3.6 million tonnes grading 1.7 grams gold per tonne.
An environmental impact study is expected to be submitted within the next month, and a feasibility study may be commissioned by year-end. Meanwhile, Aquiline has entered into a joint venture with Noranda Exploration, which allows the latter to earn up to a 75% interest in the San Isidro copper property in Michoacan state.
The property contains 20-70 million tonnes grading 0.65-1.15% leachable copper, and Noranda has conducted sampling and geophysical surveys to determine drill targets.
To earn an initial 51% interest, Noranda must spend US$2 million on exploration by April 1, 1996, and provide Aquiline with US$700,000 by April 1, 1997. A further 24% can be earned by spending an additional US$2 million by April 1, 1998.
Aquiline is currently completing separate joint-venture agreements with Noranda on other properties in Michoacan.
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